SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2008 Supreme(Raj) 2384

RAJASTHAN HIGH COURT AT JAIPUR BENCH
Shiv Kumar Sharma, J.
Big Shoppers Supermarket Pvt. Ltd. - Appellant
Versus
K.M. Trading and Agencies Pvt. Ltd. - Respondent
S.B. Arbitration Application No. 49 of 2007.
Decided On : 29-08-2008

Advocates:
For the Applicant:Mahendra Singh, Advocate.
For the Respondent:A.K. Bhandari, Sr. Advocate, Anant Bhandari, Advocate.

The Rent Tribunal has the jurisdiction to resolve disputes between landlord and tenant, and the provisions of the Rent Act have overriding effect over other laws, including arbitration agreement.

Headnote:

Arbitration - Termination of Tenancy - Rajasthan Rent Control Act,2001 - Section 11 of Arbitration and Conciliation Act,1996 - [Specific Performance, Termination of Tenancy, Decree for Eviction] - [Section 18, Section 9, Section 29, Section 2(3) of Rajasthan Rent Control Act,2001] - The court held that the Arbitrator cannot resolve whether the landlord is entitled to a decree for eviction under the Rent Act, as it is the jurisdiction of the Rent Tribunal. The provisions of the Rent Act have overriding effect over other laws, including arbitration agreement. The court dismissed the application for appointment of Sole Arbitrator.

Fact of the Case:

The applicant, a registered company, sought to appoint a sole arbitrator under section 11 of the Arbitration and Conciliation Act,1996. The dispute arose from the termination of tenancy and eviction of the tenant by the respondent landlord.

Finding of the Court:

The court found that the Rent Tribunal has the jurisdiction to resolve disputes between landlord and tenant, and the satisfaction of the Rent Tribunal is necessary before ordering eviction of the tenant. The court dismissed the application for appointment of Sole Arbitrator, stating that the Arbitrator cannot resolve whether the landlord is entitled to a decree for eviction under the Rent Act.

Issues: The issues included the entitlement to specific performance of the contract, the validity of the notice of terminating tenancy, and the entitlement to a decree for eviction as per the provisions of the Rajasthan Rent control Act,2001.

Ratio Decidendi: The court held that the provisions of the Rent Act have overriding effect over other laws, including arbitration agreement, and that the Arbitrator cannot resolve whether the landlord is entitled to a decree for eviction under the Rent Act.

Final Decision: The court dismissed the application for appointment of Sole Arbitrator.

JUDGMENT

1. - In this application under section 11 of Arbitration and Conciliation Act,1996 (for short 1996 Act') the applicant seeks to appoint sole arbitrator.

2. The applicant, a registered company, engaged in business of operating Departmental/ Supermarket stores. The respondent company owned a complex in the name of Central Point having basement, ground floor and four floors thereon at Plot No.A-34, Prabhu Marg, Tilak Nagar Jaipur. A lease deed was executed between applicant and respondent company on November 3, 2001 regarding built up area 9565.61 sq.ft. in ground floor along with 10 Air conditioned units and one DG set installed in the said premises. Due to business exigencies the applicant expressed its desire to surrender lease in respect of premises situated at first floor and to retain lease of premises at Ground floor and to revise lease rent w.e.f. October 1, 2002, the respondent lessor agreed and executed fresh lease deed on October 1, 2002. Big Shoppers Pvt.Ltd. Vide agreement dated July 5, 2005 transferred to Big Shoppers supermarket Pvt.Ltd. as growing concern all its business along with all rights available to it. Thus Big Shoppers Supermarket Pvt.Ltd. stepped in the shoes of Lessee. On account surrendering lease in respect of premises of first floor, the rent was revised w.e.f. October 1, 2002. The applicant lessee agreed to pay rent @ Rs.80,000/- per month. The lease was for a period of 18 years w.e.f. October 1, 2002. It was unregistered lease. On March 1, 2006 fresh lease deed was executed, according to which the lease was for a further period of 18 years w.e.f. March 1, 2006. After surrendering some portion, the area of demised premises will be 2650 sq.ft. only instead of 4180.55 sq.ft. and the rent will be Rs.40,000/- per month. The applicant continuously insisting for getting the deed registered, but the respondent did not pay any heed, however the applicant is ready and willing to perform his duty. The applicant received a notice dated June 19, 2007 from respondent for terminating the tenancy and to hand over the possession. The applicant sent reply to the notice on June 26, 2007, the receipt of which stands acknowledged in rejoinder dated July 3, 2007. Through reply the applicant asked the respondent to get resolve the disputes. The parties have also chosen the forum of arbitration according to clause 24 of the lease deed. Accordingly the applicant suggested names of four retired Judges for appointment as Sole Arbitrator. Following disputes are required to be referred to Sole Arbitrator:-

a) Whether the applicant is entitled to the specific performance of the contract viz.for asking the respondent to submit the lease deed for registration and get it registered?

b) In case decree for specific performance is granted, what is the effect of the decree for specific performance on the notice dated June 19, 2007 served by the lesser upon the Lessee?

c) Whether notice of terminating tenancy is valid?

d) Whether the lessor is entitled to a decree for eviction as per the provisions of the Rajasthan Rent control Act,2001?
Therefore the applicant company preferred the instant application for appointment of Sole Arbitrator.

3. The respondent company filed reply to the application raising preliminary objection thus:-

(i) The applicant has not filed original arbitration agreement along with the application, therefore, in view of section 8 of 1996 Act the application is not maintainable.

(ii) The dispute between the parties is regarding termination of tenancy and eviction of tenant applicant. The dispute can only be decided by Rent Tribunal under the provisions of Rajasthan Rent Control Act,2001 (for short `Rent Act') and such matter cannot be rendered for arbitration. As per Section 18 of Rent Act no Civil Court has jurisdiction to decide the matter between landlord and tenant. As per Section 9 of Rent Act for the eviction of tenant the satisfaction of Rent Tribunal is necessary and it does not require satisfaction of any o





















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top