Oral Judgment:

1. The petitioner has taken out this petition under Section 9 of the Arbitration and Conciliation Act, 1996 (for short, the Act) in a Leave and Licence Agreement (Agreement) between the parties having arbitration clause. The petitioner is claiming refund of a security deposit made in pursuance to the agreement. The claim of recovery is arising out of and part of the agreement. The dispute is quite interlinked and directly connected with the agreement. The remedy is elsewhere.

2. This High Court in Carona Limited vs. Sumangal Holdings 2007(7) LJSOFT 49 (D.B), considering the scheme and object of Section 41 of the Presidency Small Causes Court Act, 1883, held that such arbitration proceeding is impermissible. The basic observation in Carona Limited (supra) is as under:

“11 ..... Thus, as the legislature has created a special forum for adjudication of disputes between the licensee and licensor in relation to recovery of possession and licence fee, the jurisdiction of the court of original civil jurisdiction will be ousted by necessary implication and, therefore, applying the law laid down by the Supreme Court in Natraj Studios, the reference to arbitration of