1
Arbitration - Simulation Exercise problem
(ADR Systems - Clinical Course)
Mohanraj …… Claimant
Vs.
Sunil …… Respondent
Mr. Mohanraj entered in to an Agreement of sale with Mr. Sunil for the
purpose of buying house property bearing No. 222, 4th Cross, VII Block,
Bangalore-560019, measuring 30 x 40 feet, and paid an advance amount of
Rs. 99,00,000/-( Rupees Ninety Nine lakhs only). The sale consideration
amount fixed for the said sale was Rs.5,00,00,000/- (Rupees Five Crores only)
only. It was further agreed between the parties that in case of any dispute,
the dispute shall be referred to an Arbitral Tribunal consisting of a Sole
Arbitrator or Arbitral Tribunal consisting of 3 Arbitrators and the provisions
of the Arbitration and Conciliation Act. 1996, shall apply to the arbitration
proceedings. Jayanagar is a beautiful commercial and residential area and it
is known for its cool and pollution free atmosphere. Mr. Mohanraj
(purchaser) further agreed to pay the remaining balance amount of
Rs.4,01,00,000 (Rs. Four Crores and One lakh only) towards the sale
consideration amount to Mr. Sunil (seller) within 3 months. Mr. Sunil
handed over all the original documents pertaining to title in respect of the
aforesaid property to the purchaser Mr. Mohanraj. Meanwhile in a month’s
time the property prices in the said locality increased by 50% due to rise in
demand for house properties and for other reasons which usually govern
the real estate market.
2. After the expiry of 45 days from the date of the agreement of sale
Mr. Mohanraj approached the seller Mr. Sunil and informed him that he is
ready and willing to perform his part of the contract by paying the remaining
balance amount and accordingly requested him to fix a date for completion
