Disputes concerning rent recovery under a lease are arbitrable despite exclusivity claims under rent control laws, with jurisdiction vested in designated courts of Gurgaon and Chandigarh.

JUDGMENT

Neena Bansal Krishna, J. The petitioner has filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as `A&C Act, 1996'), seeking appointment of an independent and impartial arbitrator for adjudication of disputes having arisen between the parties.

2. Facts in brief are that the petitioner is an absolute owner of the Retail/Commercial Space bearing No. MS0312 having an approximate super area of 322.37 sq. mts. which includes approximately 216.010 sq. mts. of specific area on the 3rd Floor in the Commercial Building known as DLF Mega Mall, DLF City, Phase-I, Gurgaon, Haryana (hereinafter referred to as "subject property"). The said property was purchased by the petitioner from M/s DLF Utilities Limited, the predecessor of the respondent, vide Registered Conveyance Deed with Sub-Registrar, Gurgaon as Document No. 7847 dated 13th July, 2005.

3. The petitioner vide Registered Lease Deed dated 16th May, 2011 gave the subject property to the respondent w.e.f. 01st March, 2011 to 30th June, 2022 with the lock in period expiring on 30th June, 2022.

4. It is submitted that in terms of Clause 3 of the Lease Deed dated 16th May, 2011, the rent of Rs.1,90,650/- per month was to be paid in advance by 10th of each month. In terms of Clause 11 of the Lease Deed, the respondent had paid a sum of Rs.5,20,500/- as Interest Free Refundable Security Deposit to be refunded by the petitioner to the respondent at the time of surrender of possession on "as-is-where-is basis". In terms of Clause 13 of the Lease Deed, it was agreed that the respondent shall pay the maintenance on demand along with the actual electricity consumption and water charges, from the date of commencement of the Lease Deed till its expiry.

5. Clause 48 provided for the determination of disputes which may arise from the Lease Deed which reads as under:

"Clause 48-

All or any dispute arising out of touching upon or in relation to the terms of the Lease Deed including the interpretation and validity of the terms thereof and the respective rights and obligations of the parties shall be settled amicably by mutual discussion failing which the same shall be settled through arbitration. The arbitration shall be governed by the Arbitration and Conciliation Act, 1996 or any statutory amendments/modification thereto for the time being in force. The arbitration proceedings shall be held at an appropriate location in New Delhi by a Sole Arbitrator who shall be appointed by the Lessee and whose decision shall be final and binding upon Lessor. The Lessor hereby confirms that it shall have no objection to this appointment even if the person so appointed, as the Arbitrator, is an employee or Advocate of the Lessee or is otherwise connected to the Lessee and the Lessor confirms that notwithstanding such relationship/connection, the Lessor shall have no doubts as the appointment even if the person so appointed, as the Arbitrator, is an employee or Advocate of the Lessee or is otherwise connected to the Lessee and the Lessor confirms that notwithstanding such relationship/connection, the Lessor shall have no doubts as to the independence or impartiality of the said Arbitrator."

6. It is asserted that the respondent has defaulted in payment of rent after 31st March, 2020 for the reasons best known to it. The rent is due for the period w.e.f. from 01st April, 2020 till 30th April, 2022. Despite repeated requests, the respondent has failed to clear the outstanding rent. Surprisingly, the respondent served a Legal Notice dated 03rd July, 2020 to allegedly terminate and revoke th