2021 Supreme(Del) 2288
IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Meena - Appellant
Versus
Delhi Transport Infrastructure Development Corporation Limited - Respondent
Arb P No. 779 of 2020
Decided On : 09-03-2021
Rajiv Khosla, Advocate, Shadan Farasat, Advocate
The main legal point established is the enforceability of arbitration clause under the Arbitration and Conciliation Act, 1996 and the referral of disputes to arbitration as per the agreement between the parties.
Headnote:
Arbitration - Dispute Resolution - Arbitration and Conciliation Act, 1996 - Clause H of the agreement between the parties provides for arbitration under the Arbitration and Conciliation Act, 1996 - Delhi International Arbitration Centre (DIAC) - The disputes between the parties are referred to arbitration under the aegis of the DIAC
Fact of the Case:
The petitioner was allotted shops in ISBT, Kashmere Gate, Delhi, and faced issues with possession, payment of license fees, and cancellation of allotment. The petitioner sought arbitration for resolution of the disputes.
Finding of the Court:
The court directed the disputes between the parties to be referred to arbitration under the aegis of the Delhi International Arbitration Centre (DIAC).
Issues: Dispute over possession, payment of license fees, and cancellation of allotment.
Ratio Decidendi: The court decided to refer the disputes to arbitration as per the agreement between the parties, which provided for arbitration under the Arbitration and Conciliation Act, 1996.
Final Decision: The disputes between the parties are referred to arbitration under the aegis of the DIAC, and the petition stands disposed of.
JUDGMENT
C.Hari Shankar, J. - Mr. Shadan Farasat, learned Counsel appearing for the respondent submits that a reply to this petition may not be necessary, as the respondent is not objecting to the dispute between petitioner and the respondent being referred to arbitration under the aegis of the Delhi International Arbitration Centre (DIAC).
2. The petition sets out the dispute between the parties in subparas (a) to (l) of para 7 thereof, which may be reproduced thus:
"a) That the Petitioner was allotted the 1st cluster of 06 Shops in link block, ISBT, Kashmere Gate, Delhi after being declared successful bidder for the same and consequently an agreement to operate a shop/ outlet at I.S.B.T was executed on license basis between the Petitioner and Respondent (Delhi Transport Infrastructure Development Corporation Limited). A copy of the said agreement was notarized on 17.04.2017 and was handed over to the respondent.
b) That the Petitioner deposited the requisite amount along with the security of Rs. 7,92,792/- upon which possession letter in respect of the said shop was also given to the Petitioner on 01.02.2017. However, it is pertinent to mention here that the actual possession of the said shop was not given to the Petitioner for a long time.
c) That the Petitioner requested the officials of the respondent to give possession of the site immediately upon signing of the possession letter but the officials of respondent adopted deli-[sic] delaying tactics. The Petitioner was not satisfied with the attitude of the officials of the respondent as the agreement to license agreement was for a period of three years starting from 01 Feb 2017 and was to expire on 31 Jan 2020. The Petitioner thereafter met the Managing Director of the Respondent in that regard who was kind enough to direct the officials of DTIDC/ respondent to expedite the handing over possession of the said shops and also assured the Petitioner that the said period will be counted from the date of execution of the agreement between the parties. The agreement was finally signed by the Petitioner on 17.04.2017 and on the same day the actual possession was handed over to the Petitioner.
d) That the Petitioner was however shocked when the officials of the respondent asked the Petitioner to pay monthly license fees w.e.f month of Feb onwards. The Petitioner immediately met the officials and protested in respect of the same as the agreement was not signed by that time and the shops were still under renovation. The agreement to license was finally signed on 17.04.2017 and the main work for selling several items actually started after signing the agreement, however, the Petitioner paid the license fee for the month of January and February 2017, upon assurance that the license fee will be adjusted towards the end of the license period.
e) That the Petitioner believed on the assurances and thereafter kept on working on the shops allotted to her. The Petitioner during the running of the said shop got one more opportunity to fill up the tender of one more space for shop no. MS-01, near entry gate service lane towards the metro station, ISBT, Kashmere Gate, Delhi, ( area measuring 30.00 sqft) and was declared successful bidder upon which, a letter of acceptance bearing no. Fno.-DTIDC/2017/- 18/ISBT/KG/954/220 dated 25.05.2018 was given to the Petitioner. Consequently, the Petitioner deposited the requisite amount on 01.06.2018 in favor of the Executive director, DTIDC ( respondent). Thereafter the officials of the respondent asked the Petitioner vide letter dated 05.06.2018 bearing no. F.No.-DTIDC/2017-18/KG/972/266 to take possession of the site for the said shop and execute the agreement within 7 days of issue of the letter and consequently, possession letter was given on 05.06.2018 itself. However actual possession was not given and the Petitioner was told to wait for some time as the matter is still under consideration at a higher level. Meanwhile, the respondent also sent a bill to pa