03 October 2024 Arbitration >> Corporate Law   |   Property Law >> Personal Law  

The petitioner, M/s Aggarwal Associates (Promoters) Ltd. (referred to as 'seller'), is challenging two Claim Petitions filed by M/s Sharda Developers (the 'buyer') during arbitral proceedings. The seller contested the Sole Arbitrator's decision to allow applications for interrogatories and the discovery and production of documents, arguing that the order exceeded the scope of the agreement and was irrelevant to the dispute. The seller further claimed that the buyer’s demand was not within the terms of the agreement.

 

The Court acknowledged that judicial interference in arbitral proceedings is restricted and can only occur in exceptional circumstances. However, after reviewing the facts, the Court found that the interrogatories and documents sought by the buyer were relevant to the dispute, which involved non-fulfillment of plot allotments due to pending land acquisition. Since the seller had earlier offered alternative plots, the buyer’s request for information related to these plots was justified. The Court also found that the production of relevant communications between the seller and government authorities was crucial for resolving the dispute.

Despite the seller’s claim that the Arbitrator overstepped the contractual terms, the Court upheld the Sole Arbitrator's decision, emphasizing that the interrogatories and document requests were essential for the fair resolution of the case. The petition was dismissed, with no order for costs.