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DELHI HIGH COURT
NEENA BANSAL KRISHNA
Affordable Infrastructure and Housing Projects Private Limited – Appellant
Versus
Segrow Bio Technics India Private Limited – Respondent
JUDGMENT
1. A petition under Section 9 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as "the Act") for seeking ad-interim injunction against the respondent from acting upon the Termination Notice dated 27th September, 2022 and to desist from making any direct communication with the petitioner's sub-tenants.
2. The petitioner executed a Lease Deed dated 22nd May, 2019 with the respondent for the commercial property in respect of the front portion of the fifth floor of Industrial Plot No.445, Phase-V, Udyog Vihar, Gurugram, Haryana, (hereinafter referred to as "the leased premises"). The petitioner's business model involved leasing out commercial properties on long term lease permitting further sub-lease of the property to prospective sub-tenants at a higher rental by refurbishing the property and providing fully customized commercial space as per the specifications and requirements of its clients/sub-tenants.
3. It is submitted that the respondent is the absolute owner of the leased property and after rounds and negotiations and discussions, the parties entered into the Lease for a period of five years commencing from 01st June, 2019. The lock-in period
The determination of the Lease Agreement's nature and the establishment of a prima facie case for restraining the respondent from acting on the Termination Notice were central legal points in the jud....
The main legal point established is that Section 9 proceedings are for grant/non-grant of interim measures, not for adjudicating disputed facts, and the principles of granting interim measures should....
The disputes regarding recovery of lease amount were found to be arbitrable and did not fall under the exclusive jurisdiction of the Rent Controller.
The disputes related to premature termination of leases and non-payment of rent were found to be arbitrable, and the claims for recovery of arrears of lease amount did not fall under the Rent Act, 19....
The relief sought under Section 9 of the Arbitration Act must be in the nature of interim measures to protect the subject matter of the arbitration and cannot extend to permanent injunctions.
Upon the expiration of a lease, if not renewed, the tenancy reverts to a month-to-month basis, which can be terminated with proper notice.
The main legal point established in the judgment is the interpretation and application of lease and sub-lease agreements, particularly Clause 10 and Clause 23, and the court's assertion of jurisdicti....
A contract with specific termination conditions is not inherently determinable under Section 14 of the Specific Relief Act, allowing for interim relief to maintain status quo pending arbitration.
Government regulations prohibiting access to leased premises during the COVID-19 pandemic constituted a Force Majeure event, excusing the defendant's performance under the lease agreement.
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