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SURESH KUMAR KAIT
Greesh Kumar Bansal And Another – Appellant
Versus
Asian Hotels (north) Limited – Respondent
JUDGMENT
Suresh Kumar Kait, J. - The present petition has been filed by the petitioner under Section 11(6) of the arbitration and Conciliation act, 1996 seeking appointment of arbitrator for adjudication of disputes with respondent arising out of Lease agreement dated 13.02.2020.
2. Petitioners, who are husband and wife, claim to have entered into a Lease agreement in respect of Service apartment No. 2002, Second Floor, Block-a, New Tower Block, Hotel Hyatt Regency, New Delhi on a rental for Rs.4,91,000/- p.m. with applicable taxes, for a period of seven years.
3. Petitioners have claimed that in terms of Clause 12.2 of the Lease agreement stipulates that the agreement cannot be terminated during subsistence of lock-in period i.e. for seven years and thereafter too, upon furnishing of a six months advance to the lessor. Clause-15.2 of the Lease agreement contains the force majeure clause and Clause-15.4 contains the Dispute Resolution Clause.
4. Petitioner further claims that during the Covid pandemic period, the respondent stopped paying rent to the petitioner from 01.04.2020 and respondent vide notice dated 20.07.2020 unilaterally terminated the Lease agreement and handed over the
The court applied the provisions of the Arbitration and Conciliation Act, 1996 to appoint an arbitrator and ensure compliance before commencing the arbitration.
The court appointed an Arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, reaffirming that disputes regarding lease agreements and arbitration initiation can be resolved th....
The court held that disputes arising from a lease agreement, including claims related to force majeure, should be resolved through arbitration when both parties consent to arbitration.
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.
Where a party defaults on contractual obligations and fails to contest a petition for arbitration, the court may appoint a sole arbitrator to adjudicate the dispute.
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 upheld its jurisdiction to appoint an arbitrator in landlord-tenant disputes based on an arbitration clause, affirming party autonomy in jurisdictional matters despite objections.
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....
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 court held that financial hardship cannot prevent arbitration based on a valid arbitration agreement if an arbitrable dispute is present.
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