Authority: Madras High Court
Order Date: 17-07-2026
Case Overview
- Parties: Appellant M/s Rainbow Foundations Ltd (represented by Managing Partner Anoop Chand Jain) vs Respondents R. Baba Shankar, Murugan, Venkatachalam Ramakrishnan, Alamelu Chandrasekaran @ Geetha, Neha Krishnan, P. Dinesh Kumar, and retired Justice D. Raju (Retd.).
- Underlying contract: Sale agreement dated 08‑06‑2006 for 9 acres 46 cents at Village No.126, Nemili Group, Sriperumpudur Taluk, total consideration Rs 5 crore, Rs 1 crore advance paid, balance Rs 4 crore due on execution/registration within 30 days (by 07‑07‑2006).
- Dispute: Respondents alleged breach; appellant invoked arbitration clause; Sole Arbitrator awarded specific performance and execution of sale deed (Award dated 20‑08‑2012).
- Petition under Section 34 of the Arbitration and Conciliation Act filed by respondents (OP Nos.698/2012 and 711/2012) leading Single Judge to set aside award and direct appellant to seek refund of advance.
- Present appeals (OSA Nos.128 & 129 of 2020) filed under Section 37 challenging the Single Judge’s order.
- Key legal arguments: appellant argued time not essence of contract; respondents argued Clause 3 and Clause 11 made time of the essence, award erroneous, contract determinable under Specific Relief Act.
Final Outcome
- Both Original Side Appeals dismissed; no costs awarded.
- The order dated 26‑11‑2019 of the Single Judge setting aside the arbitral award is confirmed.
- The appellant’s liberty to institute appropriate civil proceedings for refund of the Rs 1 crore advance is affirmed; such proceedings to be decided on their merits without influence from the arbitral award.
Topics: Arbitration, Real Estate