Prideasia arbitration reaches dead-end

In fact,the arbitrators had asked the CHB to move their request for reduction in arbitration fee before the Tribunal,which has not held even a single hearing in the case for the last over two months. The three arbitrators who are entrusted with the task of settling the ongoing dispute between Parsvnath Developers and CHB are Justice (Retired) D P Wadhwa,Justice (Retired) Amardutt and Justice (Retired) S C Aggarwal. While Justice Wadhwa has been appointed arbitrator from Parsvnath’s side (called co-arbitrator),Justice Amardutt is the arbitrator from CHB’s side (also called co-arbitrator). Justice S C Aggarwal is the Presiding Arbitrator.

Asked for his comments on the issue,a senior CHB official said,“We have no clue when the next date of hearing of the arbitration would be? The last hearing was held in September 2009. After that at the next hearing,it was adjourned by the arbitrators,saying that a fresh date of hearing would be intimated to us. This has not been done till date”.

It has been over a year now since CHB and real estate giant Parsvnath Developers Ltd have entered into arbitration to settle their pending dispute over the much controversial Prideasia project,which is lying dumped. The work at the site in Rajiv Gandhi Chandigarh Technology Park,where the project was coming up,was stalled on orders issued by Ministry of Home Affairs (MHA).

The project was among four controversial projects including the Amusement-cum-Theme Park,Filmcity and Medicity which were inquired into by the Central Vigilance Commission (CVC). While the three had already been shelved by the Chandigarh Administration,Prideasia went into arbitration since Rs 600 crore of the developer’s money that was lying in the Escrow account had been frozen by CHB and on top of that,CHB had also issued a penalty notice to Parsvnath Developers for allegedly violating the terms and conditions of the contract.

“We have already incurred an expenditure of over Rs 1 crore on this arbitration. A finding will definitely come,whether in our favour or against us. The arbitrators are taking their time and let’s see when the final verdict is announced”,said another senior CHB official.