IN THE HIGH COURT AT CALCUTTA
DEBANGSU BASAK, MD. SHABBAR RASHIDI
Sharad Goenka – Appellant
Versus
Tarit Mitra – Respondent
JUDGMENT :
Md. Shabbar Rashidi, J.
1. The appeal is directed against an order dated January 30, 2024 passed in GA No. 2 of 2022 arising out of CS No. 19 of 2022.
2. By the impugned order the learned Single Judge dismissed the application under Section 8 of the Arbitration & Conciliation Act, 1996, made on behalf of the appellant seeking reference of the disputes to arbitration. The learned trial Judge did not find that there was any agreement between the parties containing an arbitration clause.
3. Learned advocate for the appellant submitted that the learned Single Judge erred in appreciating that the respondents/plaintiffs filed the suit seeking eviction of the appellant from the suit premises and in such suit, tenancy of the appellant was claimed to be created by their predecessor under an agreement dated January 27, 2006. According to learned advocate for the appellant, all such agreements contained specific arbitration clauses. The respondents sought eviction of the appellant from the suit premises as legal representative of the person who inducted the appellant as tenant therein on the strength of the agreements dated January 27, 2006.
4. Learned advocate for the appellant further
The arbitration clause remains valid and enforceable irrespective of the original tenancy agreement's expiration, allowing for dispute resolution through arbitration.
Oral extensions of lease agreements do not sustain arbitration clauses; such clauses require written documentation to remain valid following the lease's expiration.
The main legal point established in the judgment is the enforceability of arbitration agreements in the Tenancy Agreement and the Consolidated Charges Agreement under Section 8 of the Arbitration and....
The expiration of a tenancy agreement terminates the enforcement of its arbitration clause, allowing the landlord to maintain a suit for eviction.
Point of law : Tenancy – Arbitration clause in lease Agreement -Tenancy covered under and governed by rent control legislation and therefore, not arbitrable.
Disputes capable of being adjudicated by the Civil Court are generally amenable to arbitration, unless expressly excluded. The importance of appointing an eligible arbitrator was also emphasized.
The main legal point established in the judgment is that disputes governed by the Transfer of Property Act are arbitrable, while those governed by rent control legislation are non-arbitrable and can ....
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