LEGAL NOTICE TO APPOINT ARBITRATOR IN CASE OF DISPUTE ARISING OUT OF AGREEMENT TO SELL EXECUTED BY A BUILDER IN RESPECT OF COMMERCIAL SPACE
LEGAL NOTICE TO APPOINT ARBITRATOR IN CASE OF DISPUTE ARISING OUT OF AGREEMENT TO SELL EXECUTED BY A BUILDER IN RESPECT OF COMMERCIAL SPACE.
Regd. A.D/Speed Post/ Courier
Dated: …………
M/s _____________________________
Address:__________________________
Duly represented by its __________________
LEGAL NOTICE FOR APPOINTMENT OF ARBITRATOR
Sir,
Under instructions from and on behalf of my client __________, S/o Shri ________________________, I hereby serve upon you the following Legal Notice as under :-
1. That my Client(s) abovesaid entered into an Agreement to Sell dated ___________ with you the Addressee in respect of purchase of Commercial Office Space admeasuring _____ sq.mtrs. (_____ sq.ft.) approx. in the Commercial Complex to be promoted and developed by you the Addressee at property admeasuring _____ sq.mtrs. located at ___________________ _______________, in terms of a Collaboration Agreement for Development of Property dated _______ which was executed between you the Addressee and the Owner /Lessee of the property i.e. M/s _____________.
2. That you the Addressee has as per clause ___ of the said Agreement dated _______ allotted to my Client(s) Commercial Office Space No._______ admeasuring _____ sq.ft. on _______ Floor, (hereafter referred to as the said Space) for a total sale consideration of Rs._______/-.
3. That you may note that at the time of the execution of the said Agreement to Sell dated _______ in respect of the said Space between you the Addressee and my Client(s) abovesaid, and also at the time of making the payment to you in terms of the said Agreement to Sell dated _______, you the Addressee specifically assured that the Commercial Complex known as property admeasuring _____ sq. mtrs. located at __________________________________ being developed by you the Addressee in Collaboration with the owner/Lessee of the said Property, would be completed and developed in all respects in a time bound manner as was reflected in the Collaboration Agreement for Development of Property dated _______, executed between M/s _____________, the owner/lessee of the said Property and you the Addressee.
4. That as per the Schedule of Payments prescribed in the said Agreement to Sell dated _______, my Client(s) abovesaid was required to pay you till date an amount of Rs. _____/-, which my Client(s) has duly paid to you the Addressee and therefore all due payments made by my Client are up-to-date.
5. That my Client(s) and other Customers / buyers similarly placed were very worried about the inordinate delay in the development & construction of the said Commercial Complex because very unfortunately even no satisfactory reply was being given by you the Addressee to either my Client(s) or other Customers / Buyers. Therefore to cover up your own lapses, you the Addressee first wrote a letter dated ________ to my Client(s) & other customer / buyers similarly placed, in which it was stated as under:-
“Sub : Update on Developments in respect of ________.
Dear Sir,
We heartily convey our greetings for the festive season and wish you and your family, health, wealth and happiness on approaching New Year and every year to come.
First of all, let us take this opportunity to share latest development & happenings in respect of the Project known as “________” being developed at _________. In our endeavor to maximize returns on investment made by you, our technical and business teams have visited abroad to strengthen the customer base and to finalized discussions with the prospective companies interested in taking space at the Project known as “________” on lease basis. The teams visited have also attended exhibitions, fares and technical seminars to successfully convert ‘________’ into specialty mall/complex of construction and interior/home decoration products industry. Our teams have got tremendous response from international companies.
We are also pleased to share with you that formalities related to commencement of construction are near completion and we expect construction work to start very soon. The little more time taken than projected time schedule for completing required formalities for commencing construction work shall be covered during the construction phase. We assure you to deliver the possession as per our commitment.
In case you have any query with regard to this project, please contact us and we would be more than pleased to come up to your expectations. However, we shall keep you informed about progress from time to time.
We appreciate your business and thank you for taking part in our project ”.
6. That thereafter you the Addressee again wrote a letter dated _______ to my Client(s) and other Customers / Buyers similarly placed and stated as under:-
“ Re: Booking of Commercial Office Space _______ in the Project known as “_______, ________________Payment of future Installments.
Dear Customer,
This is in furtherance to our earlier letter giving you update on the above Project.
2. We take this opportunity to inform you that the sanctions/approvals in respect of the above Project are expected to be received shortly from the Statutory Authority(ies) (hereafter referred to as “__________” and within ___ days of the receipt of sanctions/approvals from the Statutory Authority(ies), we will commence the civil development work at the site, so as to proceed with the work of commencement of construction.
3. However, in view of the delay in the receipt of the sanctions/approvals from the Statutory Authority(ies) the management has decided to inform you not to make the payment of future installment due to be paid by you in respect of the above Commercial Office Space.
4. As soon as the sanctions/approvals is received from the Statutory Authority(ies) and demolition of the Building commences, we will send you the Demand Letter for the future installments, giving you 30 days time to pay the same.
5. We would, however, again re-assure you that any delay in the Project on account of delay in the issue of sanctions/approvals by the Statutory Authority(ies) will be overcome and the Management will endure to deliver the possession of the Commercial Office Space to you as per the time schedule agreed in terms of the Agreement to Sell dated _________ executed with you ”.
7. That however despite the above letters, my Client & other Customers/Buyers were not satisfied as it was apparent that the letters were just an eyewash because on confirmation from the Statutory Authority(ies), it was discovered that the delay was purely because of the inactions of you the Addressee and the delay was primarily on account of your lapses and it seemed that you were not even interested in the development & construction of project. Therefore in that background my Client(s) above said confronted the Directors of you the Addressee Company on ________ and it is in this very meeting that Shri _____________ Director of the Addressee Company openly told my Client(s) that you the Addressee is in financial crises & that the said Project was no more a commercially viable proposition for you the Addressee and instead you the Addressee would be selling the entire land to some third party on a much higher rate as the real estate prices had gone up substantially . You the Addressee also made it very clear that you the Addressee were deliberately moving slowly in the Project in the past and now the time had come to sell the land instead of going ahead with the project. Thus it was very clear to my Client(s) that the Directors of you the Addressee Company had colluded together to cause wrongful gain for themselves and at the same time cause wrongful loss to my Client(s) and other Customers / Buyers similarly placed. It is therefore very clear that serious differences have now emerged between my Client(s) and you the addressee.
8. That in view of the position stated above, my Client(s) has reasonable apprehension that you are hell bent upon causing loss to my Client(s) abovesaid and you are also not going to abide with the terms of the Agreement to Sell dated _______ executed between you and my Client(s) abovesaid.
9. That in view of the facts and circumstances my Client do hereby invoke clause No._______of the Agreement to Sell dated _______ executed between my Client(s) abovesaid and you the Addressee and propose the name of Hon’ble Mr. Justice _____ (Former Justice of Hon’ble Supreme Court of India / Hon’ble ____High Court) as a Sole Arbitrator, for adjudication of the disputes between you the Addressee, and my Client(s) abovesaid, and you may further take notice that in case my Client do not receive any reply in response to this Legal Notice within a period of 30 days then in that event, it shall be presumed that you have no objection to the name of Mr. Hon’ble Justice _____ (Former Hon’ble Supreme Court of India / Hon’ble ____High Court) for his appointment as Sole Arbitrator in terms of clause No. ___ of the Agreement to Sell dated _______ executed between my Client(s) abovesaid and you the addressee for adjudication of disputes, in accordance with law.
10. `Needless to mention that my Client(s) reserves its rights to approach the Hon’ble High Court for urgent interim orders to protect its interest.
Take notice accordingly.
( ___________ )
Advocate
Copy of this Legal Notice is retained in my office for record and necessary action, if need be.
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