JUDGMENT

LOKESHWAR SINGH PANTA, J.

1. Bharat Sewa Sansthan has filed this appeal challenging the final judgment and order dated 14.09.2004 of the learned Single Judge of the High Court of Judicature at Allahabad, Lucknow Bench, in Writ Petition No. 3388/2004(MS) by which the order of the learned Additional District Judge (Special Judge, E.C. Act) Lucknow, dismissing the application filed by the U.P. Electronics Corporation Limited [hereinafter referred to as the respondent-Corporation] under Section 8 of the Arbitration and Conciliation Act, 1996, has been set aside with direction to the learned Additional District Judge to refer the matter to arbitration and both the parties are directed to appoint their Arbitrator as per the arbitration clause in the lease agreement.

2. Background facts in a nutshell are as follows:

2.1 Bharat Sewa Sansthan [hereinafter referred to as the ‘appellant-Sans than] is a charitable society registered under the Societies Registration Act. The main object of the appellant-Sansthan is to work for the social, economic, educational and cultural enlistment of the people. The appellant-Sans than is the sole and exclusive owner of multi- storied building known as Chandra Bhanu Gupta Smarak Nav Chetna Kendra located at No. 10, Ashok Marg in the city of Lucknow (UP.). on 11.11.1980, the respondent-Corporation took for office accommodation an area measuring 14,925 square feet on the first floor of the multi-storeyed building of the appellant Sansthan on monthly rent of Rs. 47,760/- @ Rs. 3.20p per square foot, which comprised (a) basic rent @ Rs. 2/- per square foot amounting to Rs. 29,850/- and (b) the balance amount of Rs. 17,910/- @ Rs. 1.20p per square foot towards the ancillary services provided for the said accommodation in the form of elevators (lifts), a designated area for parking of vehicles, lights for public and common passages and sewerages etc. under a lease granted by the appellant-Sansthan to the respondent-Corporation on 01.12.1980.

3. It is the case of the appellant-Sansthan that in tile month of June, 1981 the respondent Corporation expressed its requirement to the appellant-Sansthan for some additional accommodation on the first floor of the building adjoining to the accommodation which the respondent-Corporation had earlier occupied for setting up a Marketing Office and a Registered Office of M/s Uptron India Limited, which is the subsidiary of the respondent Corporation. M/s. Uptron India Limited was established for the manufacturing of electronic equipments and components, such as the television, computer, capacitors, process control, EPABX systems etc. It was mutually agreed between the appellant-Sansthan and the respondent-Corporation that additional accommodation measuring 3000 sq. ft. in area shall be leased out to the respondent Corporation w.e.f. 25.06.1981 on a monthly rent of Rs. 9,750/- i.e. @ Rs. 3.20 per sq. ft., which comprised of (a) basic rent @ RS. 2/per sq. ft. amounting to Rs. 6000/- and (b) balance amount of Rs. 3750/- @ Rs. 1.20p. per sq. ft. towards such ancillary charges as has been included in the case of the lease in respect of the first portion of the accommodation let out to the respondent-Corporation.

4. It is further the case of the appellant Sansthan that the tenancy of both the portions of the accommodation let out to the respondent-Corporation had continued without any interruption from the respective dates of commencement of lease, subject-to periodical escalation of the rent including other charges on the basis of mutual agreement with the result that the consolidated monthly rent of the two portions of the accommodation let out to the respondent-Corporation had risen to Rs. 79,083.75p. (Rupees Seventy nine thousand and eighty three and seventy five paise only) well before 29.07.1999, on which day the lease was determined. The appellant-Sansthan on 10.03.2000 filed Suit No. 1612000 for eviction and recovery of arrears of rent against the respondent-Corporati