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TMI Blog2013 (5) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... en filed by M/s Mapletree Properties Pvt. Ltd. in Special Leave Petition (Civil) No.26173 of 2010 filed by Ludhiana Improvement Trust for vacating the interim order of stay passed on 15.09.2010, or modification thereof. I.A. No.3 of 2010 has been filed by Ludhiana Improvement Trust in the said Special Leave Petition to bring on record certain additional documents. Both the said IAs have been taken up for hearing along with the four Special Leave Petitions, as referred to hereinabove. Leave granted in all the Special Leave Petitions. 2. The Ludhiana Improvement Trust, hereinafter referred to as "the Trust", the Appellant in the appeal arising out of SLP(C) No. 26173 of 2010, was constituted under the Punjab Town Improvement Act, 1922, hereinafter referred to as "the 1922 Act", for the planned development of the city of Ludhiana. For the purpose of construction of the City Centre in Ludhiana, the Trust invited bids by a Request of Proposal document dated 15.03.2005, with the intention of entering into a Joint-Venture with developers in the private sector. After evaluation of the bids, M/s. Today Homes and Infrastructure Pvt. Ltd., the Appellant in the appeal arising out of SLP(C) No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the same basis. It was also agreed that the demarcation of the operations involved would be done jointly by the architects of the parties and all bookings prior to 15.10.2006, would be honoured and would go to the share of the Company. It was also decided that a Supplementary Agreement incorporating the said terms and conditions should also be executed. Instead of completing the said agreement, the Trust filed its response to the Arbitration Application No.263 of 2006, raising a plea, for the first time, that the agreement executed with the Company was void. Such plea was raised two years after the agreement was entered into and allowing a substantial portion of the construction of the City Centre, Ludhiana, to be completed, without any protest, after the Trust had received a sum of Rs.23 crores as its share of the sale/lease proceeds from over 300 customers. 5. Faced with the above situation, the Company wrote a letter to the Trust on 08.06.2007, invoking the provisions of Article 17.1(a) and (b) of the Agreement dated 24.05.2005, for appointment of an arbitrator. It was also indicated in the letter that in the event no reply was received, the Company would nominate its arbi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge who came to a finding that the agreement dated 24.05.2005 was not legal and valid and, therefore, the disputes between the parties arising out of the said agreement could not be referred to an arbitrator. The application under Section 11(6) of the 1996 Act was, therefore, dismissed. 9. It is the said decision of the designate Judge, which is the subject matter of challenge in these appeals. 10. On behalf of M/s. Today Homes and Infrastructure Pvt. Ltd., it was urged that while considering the matter on remand, the designate Judge treated the matter as if he was deciding a suit, but without adducing evidence. Mr. Uday U. Lalit, learned Senior Advocate submitted that in the parameters for consideration of an application under Section 11(6) of the 1996 Act set out by this Court in the decision rendered by the 7-Judge Bench in SBP & Co. (supra), this Court had intended a preliminary enquiry on the existence of an arbitration agreement and a dispute, which was required to be considered by an arbitrator to be appointed. 11. Mr. Lalit urged that Section 11(6) of the above Act nowhere contemplates an application filed thereunder to be gone into in intricate detail by framing issues a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by a member of this Bench (S.S. Nijjar, J.), while deciding the case of Reva Electric Car Company Private Limited Vs. Green Mobil [(2012) 2 SCC 93], wherein the provisions of Section 16(1) in the backdrop of the doctrine of kompetenz kompetenz were considered and it was inter alia held that under Section 16(1), the legislature makes it clear that while considering any objection with regard to the existence or validity of the arbitration agreement, the arbitration clause, which formed part of the contract, had to be treated as an agreement independent of the other terms of the contract. Reference was made in the said judgment to the provisions of Section 16(1)(b) of the 1996 Act, which provides that even if the arbitral tribunal concludes that the contract is null and void, it should not result, as a matter of law, in an automatic invalidation of the arbitration clause. It was also held that Section 16(1)(a) of the 1996 Act presumes the existence of a valid arbitration clause and mandates the same to be treated as an agreement independent of the other terms of the contract. By virtue of Section 16(1)(b) of the 1996 Act, the arbitration clause continues to be enforceable, notwithstan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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