High Court Of Delhi
SANJIV KHANNA
INDIA TRADE PROMOTION ORGANISATION - Appellant
Versus
INTERNATIONAL AMUSEMENT LIMITED - Respondents
WP (C) 1771 Of 2007
Decided On : 07/16/2007
PP Act - Land Allotment - [Section 15, Arbitration and Conciliation Act, 1996] - The court held that matters referred to in section 15 of the PP Act cannot be referred to arbitration.
Fact of the Case:
Negotiations began for the allotment of land for an amusement park in Delhi on a portion of land given on lease by the Land and Development officer for which Trade Fair Authority of India (rechristened as 'india Trade promotion Organisation, hereinafter referred to as ITPO) considered the request of International Amusement Limited (for short 'ial' ). The said park was to be established at Pragati Maidan.
Finding of the Court:
The court found that matters referred to in section 15 of the PP Act cannot be referred to arbitration.
Issues: The issues involved the applicability of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (PP Act) and the Arbitration and Conciliation Act, 1996 to the dispute between the parties.
Ratio Decidendi: The court held that the PP Act confers exclusive jurisdiction on the Estate Officer to decide the disputes enumerated in Section 15, and these disputes cannot be decided by civil courts or by arbitration.
Final Decision: The court allowed WP (C) No. 2015/2001 filed by ITPO and held that matters referred to in section 15 of the PP Act cannot be referred to arbitration. CM (M) No. 553/2007 filed by IAL is dismissed. Pending applications in the said petitions are also disposed of in terms of the directions and observations made above. The writ petitions filed by DMRC and supreme Court Bar Association are rendered infructuous and are accordingly disposed off. In the facts and circumstances of the case there will no order as to costs.
( 1 ) AS the factual and legal issues arising for our consideration in all these matters are similar, we propose to dispose of the petitions by this common judgment and order.
( 2 ) BEFORE we discuss the issues that arise for our decision in these proceedings, it would be necessary to set out brief facts necessary for adjudication of the issues that arise for consideration. Background
( 3 ) NEGOTIATIONS began for allotment of land for establishment of an amusement park in Delhi on a portion of land given on lease by the Land and Development officer for which Trade Fair Authority of India (rechristened as 'india Trade promotion Organisation, hereinafter referred to as ITPO) considered the request of International Amusement Limited (for short 'ial' ). The said park was to be established at Pragati Maidan.
( 4 ) ON 28th January, 1984, Trade Fair Authority of India (for short 'tfai') took a final decision to allot land to IAL on licence basis, as TFAI was a lessee under the Government of India in respect of the aforesaid land on which it was decided to establish an amusement park. On 6th December, 1984 a letter was written by the TFAI to IAL intimating them that initially the area would be licensed to IAL on the similar lines as licenced to State Governments and central Ministries who had/are setting up permanent pavilions at Pragati Maidan. It was also stated therein that the premises would be handed over to IAL on permanent lease basis subsequent to the renewal of lease deed of.
( 5 ) ON 30th March, 1987, a letter was written by the Ministry of Urban development, Government of India to TFAI on the subject of allotment of land to tfai in Pragati Maidan complex. In the said letter it was intimated that the president of India was pleased to sanction allotment of a plot of land in the pragati Maidan complex New Delhi to. One of the conditions was that the allotment would be subject to the terms and conditions as given in the perpetual lease deed in favour of. Clause 2. ii of the said letter indicated that the land with permanent buildings measuring about 40 acres may be allotted to the tfai on a 99 years lease on payment of premium at the rate of Rs. 6 lacs per acre and annual ground rent at the rate of 2. 5% of the said premium. It was further stipulated in clause 2. iv of the said letter that the TFAI had licensed out an area of about 16 acres in Pragati Maidan Complex to M/s. International Amusement limited, for setting up an amusement park. It was also stated that for this land the TFAI would be charged an annual licence fee at the rate of Rs. 400 per acre commencing from the date on which the licence was granted by them to the company. Another condition therein was that the rate of licence fee would be subject to revision from the year 1989-90. Thus the lease or its terms on which land was allotted to TFAI, stipulated that IAL was a licencee, who was permitted to operate from the portion allotted subject to conditions.
( 6 ) A licence deed came to be executed in form of an agreement on 10th November, 1987 between the TFAI and IAL. In clause 2 of the said agreement it was stipulated thus:
"the licence shall be for a period of 3 years commencing from 14th November, 1984. Further extension of licence shall be at the sole discretion of the licensor. The period from 7th August to 13th November, 1984 shall be deemed as preparatory arrangement period. "
( 7 ) ANOTHER relevant clause which may have bearing on the facts of the present case was the stipulation in clause 19 that the TFAI had reserved right to withdraw any area licensed to the licencee at any time without assigning any reason subject to the licence fee being reduced proportionately. Clauses 24, 25, 27 and 28 are also relevant and therefore contents thereof are extracted hereinbelow:
"24. Any renewal or extension of licence is the discretion of the authority.
25. That after the expiry or termination/cancellation of licence the licensor shall hav
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Shri Ram Narain v. The Simla Banking and Industrial Company Limited
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