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SURESH KUMAR KAIT
Vidya Rani Garg – Appellant
Versus
Feetoes – Respondent
JUDGMENT
Suresh Kumar Kait, J. - The present petition has been under Section 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes with respondent.
2. The dispute in question pertains to Shop no. M-24, Ground Floor admeasuring approx. 425 square feet situated at M-Block, Market, Greater Kailash-1, New Delhi. Petitioner herein claims to be absolute owner thereof by virtue of registered sale deed dated 02.09.1999. According to petitioner, the said shop was let out to respondent, a proprietorship firm, for a period of six years commencing from 01.12.2019 to 30.11.2025, on a monthly rent of INR 3,70,000/- and as per the lease agreement, the rent was payable in ARB.P. 1079/2021 advance on or before the 5th day of each English Calendar month, failing which penalty of Rs.5,000/- per day for the delayed period was to be paid to the petitioner. The aforesaid lease agreement was registered in the office of Sub-Registrar, Hauz Khas, New Delhi on 06.12.2019.
3. According to petitioner, as per Clause-3 of the aforesaid lease agreement, after completion of three years, it was agreed that the monthly rent shall be increased from Rs.3,7
The court held that arbitration must be initiated if disputes remain unresolved, particularly when both parties accept the need for arbitration, affirming the provisions of the Arbitration and Concil....
Appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 in cases of serious breach of lease terms.
The court applied the provisions of the Arbitration and Conciliation Act, 1996 to appoint an arbitrator and ensure compliance before commencing the arbitration.
Court emphasized that a party's failure to respond to notices regarding breach of contract leads to the appointment of an arbitrator to resolve disputes, as stipulated by the Arbitration and Concilia....
The court's decision emphasizes the importance of arbitration in resolving disputes and upholding the terms of the arbitration agreement.
The main legal point established is the court's authority to appoint a Sole Arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 to resolve disputes related to lease agreements.
The court affirmed the validity of invoking arbitration under the lease agreement, emphasizing the necessity for resolution of disputes through arbitration as per agreed terms.
The importance of consent of both parties in appointing an arbitrator and the interpretation of Section 10 of the Arbitration and Conciliation Act, 1996.
The court upheld its jurisdiction to appoint an arbitrator in landlord-tenant disputes based on an arbitration clause, affirming party autonomy in jurisdictional matters despite objections.
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