Real estate giant Parsvnath Developers has appointed an arbitrator to settle issues with the Chandigarh Housing Board, and threatened to launch legal proceedings in case the board fails to reciprocate by appointing an arbitrator of its own. It has done so under the ‘nominee arbitrator’ clause in the contract between the two parties.

According to the clause, “In case of dispute between the parties, a party requiring arbitration shall appoint an arbitrator in writing, inform the other party and call upon the other party to appoint its arbitrator. If the other party fails to appoint its arbitrator, the party appointing arbitrator shall take steps in accordance with the Arbitration and Conciliation Act, 1996.”

A former judge of the Supreme Court, Justice D P Wadhwa, has been appointed as the arbitrator by Parsvnath and the CHB has to appoint its arbitrator by October 30, failing which Parsvnath is free to move court.

Parsvnath’s projects — Filmcity and Prideasia — are caught in a muddle of controversies owing to the ongoing tussle between the Administration and the developer. The developer is particularly irked by the alleged indifferent attitude of the CHB towards the Prideasia project — a residential project worth over Rs 800 crore located in the Rajiv Gandhi Information Technology Park. The project has been delayed, Parsvnath alleges, due to the CHB moving at a snail’s pace in handing over the land and passing building plans. The project has also been hit by the recession, which has added to the woes of Parsvnath.

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