The court sanctioned a modification of arbitral tribunal's order regarding rental obligations during arbitration, emphasizing the role of mutual consent in clarifying payment terms.

ORDER (Oral)

(Video-Conferencing)

1. After some arguments, learned Senior Counsel for the parties ad idem agree tothe disposal of this appeal by a modification of the direction issued by the learned Arbitral Tribunal. In place of the direction awarding a sum of Rs.10,41,40,263/-. Mr. Kirpal, learned Senior Counsel for the appellant submits, on instructions that his client is willing to agree to grant of relief to the respondent in terms of alternate prayer `b' of the application filed by the respondent under Section 9 of the Arbitration and Conciliation Act, 1996, which was converted into an application under Section 17 of the 1996 Act, and decided by the learned Arbitrator vide the impugned order. Prayers `a' and `b' in the Section 9 application of the respondent read thus:

"Therefore, it is most respectfully prayed that on the facts and circumstances of the case as stated herein above, this Hon'ble Court be pleased to direct the Respondent:

a. To continue to maintain and properly upkeep the Apartment No.3003, 3rd Floor situated in Block A/New Tower, Hotel Hayatt (sic) Regency, Bikha Ji Cama Place, New Delhi during the arbitration proceeding;

b. To secure the sum of Rs.10,41,40,263/- (Rs.Ten Crore Forty One Lakh forty thousand two hundred sixty three only) which has become payable towards the rental of the remaining lock-in period of 84 months alongwith applicable GST; or in alternate, to pay the up to date arrears of monthly rent and applicable tax with a further direction to pay the future rent on time in termsof the Lease Deed dated 19.8.2019; and

c. Pass any other and further orders as this Hon'ble Court may deem fit and proper in the interests of justice."

(Emphasis supplied)

2. Mr. Kirpal submits, on instructions, that his client is willing to abide by the alternate prayer `b' of the respondent as above, which would require the appellant to pay up to date arrears of monthly rent and applicable taxes with a further undertaking to pay future rent in terms of the lease deed dated 19th August, 2019. In order to avoid any ambiguity on this count, learned Counsel are agreed that the arrears of up to date monthly rent along with applicable tax would be reckoned from March, 2020, and that the monthly rent payable in future would be Rs.10,28,000/-.

3. As such, this appeal is disposed of, with consent, by modifying the directions issued by the learned Arbitral Tribunal, to the following effect:

(i) The appellant shall deposit the up to date arrears of monthly rent and applicable tax, reckoned with effect from March, 2020, with the Registrar General of this Court, by way of a demand draft covering the said amount, which shall be forthwith deposited in an interest bearing fixed deposit, to abide by further directions to be passed by the learned Arbitral Tribunal.

(ii) The appellant shall also deposit, monthly, with the Registrar General of this Court, the amount of Rs.10,28,000/-, towards rent payable in respect of premises in question. This amount would also be deposited in an interest bearing fixed deposit and would abide by the further directions to be passed by learned Arbitral Tribunal.

4. As there is no appeal by the respondent, this Court is not interfering with the directions contained in the impugned order in so far as the respondent is concerned.

5. In view of the above, Mr. Aggarwal undertakes not to pursue the contempt proceedings which are preferred before the Arbitral Tribunal.

6. With the aforesaid directions, this appeal stands disposed of.