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2017 Supreme(Raj) 2697

RAJASTHAN HIGH COURT (JAIPUR BENCH)
Mohammad Rafiq, J.
Binika Mittal - Appellant
Versus
Neesa Leisure Limited - Respondent
Arbitration Application Nos. 19, 20, 21, 22, 49, 50, 51, 52, 53, 54, 55, 56, 57, of2017
Decided On : 01-12-2017

Advocates Appeared:
Mr. Jatin Agrawal, Advocate, for the Petitioners; Mr. Peeyush Purohit for Mr. Ankit Jethwani, Advocated, for the Respondents

Headnote:

Arbitration and Conciliation Act, 1996 - Sections 11(6) and X(b) - Rajasthan Rent Control Act, 2001 - Sections 18, 8, 2(f) and 9 - Companies Act, 1956 - Transfer of Properties Act, 1882 - Indian Contract Act, 1872 - Fourth Schedule of the Arbitration and Conciliation (Amendment) Act, 2015 - Disputes and differences between the parties - Company incorporated - Township developer engaged in real estate development works and operation of various projects – Lease - Operation deed - Applications have been separately filed by thirteen petitioners under section 11(6) of the Arbitration and Conciliation Act, praying for appointment of Arbitrator to adjudicate disputes and differences between the parties – Respondent is a company incorporated under Companies Act, 1956, is a builder and township developer engaged in real estate development works and operation of various projects - Respondent came up with its project of a golf resort at Road situated in village - Petitioner purchased two golf studio units no. 1211 and 1408, both ad-measuring 315.79 square feet - Petitioners then leased out said golf units - Lease and operation deed was initially executed for a period of twelve years - Respondent was required to pay a sum of per month for initial three years and for next three years lease amount was to be increased – Held, court finds that there does exist a dispute between the parties and there is also an arbitration clause in the lease deed - Court does not deem it appropriate to go into merits of the claims and counter-claims - Petitioner has certainly made out a case for reference to arbitration - Since respondents have failed to refer the dispute to arbitration in accordance with the agreed procedure - Right to make appointment of an arbitrator now stands forfeited. Consequently, all the applications deserve to succeed and are allowed. Mr. J.P. retired District Judge, R/o 34- is hereby appointed as an independent sole arbitrator to separately arbitrate and resolve the disputes in each case. Payment of the cost of arbitration proceedings and the arbitration fees in each case shall be made as per the Fourth Schedule of the Arbitration and Conciliation (Amendment) Act, 2015 read with Manual of Procedure for Alternative Dispute Resolution, 2009 of this Court, as amended from time to time - Application allowed-Fees

JUDGMENT

Mohammad Rafiq, J. - These applications have been separately filed by thirteen petitioners under section 11(6) of the Arbitration and Conciliation Act, 1996, praying for appointment of Arbitrator to adjudicate the disputes and differences between the parties. Since all the applications raise identical question of law and that the facts are also similar, therefore, all are being decided by this common judgment by taking the facts of Arbitration Application No. 20/2017 as the basis.

2. As per the petitioner, the respondent, which is a company incorporated under the Companies Act, 1956, is a builder and township developer engaged in real estate development works and operation of various projects. The respondent came up with its project of a golf resort at Agra Road situated in village Jamdoli. The petitioner purchased two golf studio units no. 1211 and 1408, both ad-measuring 315.79 square feet. Petitioners then leased out said golf units to respondent themselves, upon their representation and accordingly two registered lease and operation deeds dated 08.09.2011 were executed between the petitioner and the respondent. The lease and operation deed was initially executed for a period of twelve years. The respondent was required to pay a sum of Rs. 13000/- per month for initial three years and for next three years the lease amount was to be increased to Rs. 14550/- per month. For next three years, the sum was to be increased to Rs. 16303/- and for last three years the lease amount would be Rs. 18259/- respectively.

3. The respondent, after execution of lease and operation deed dated 08.09.2011, paid the lease amount till July, 2014, however no amount was paid to the petitioner from August, 2014 onward towards lease money to the petitioner till date. The respondent also failed to deposit any TDS. It is contended that a total sum of Rs. 7,59,840/- is outstanding as arrears of lease amount for the period from August, 2014 to September, 2016. Further a sum of Rs. 1,45,555.11 has accrued as interest on the said amount in terms of the said lease and operation deed. Thus, a total sum of Rs. 9,05,395.11 is outstanding and recoverable from the respondent. Similar is the position with regard to other tenant petitioners.

4. Mr. Jatin Agrawal, learned counsel for the petitioners, contended that the petitioners approached the respondent on various occasions and tried to contact its officials in the office situated at Jaipur and requested them to release the arrears. Though bald assurances were given but actual payment was never made. The CMD of the respondent on 12.04.2015 assured the petitioner that arrears would be paid shortly within a week but no such payment was made. Copy of the minutes of the meeting dated 12.05.2015 has been placed on record. Reference is made to Section X(b) of the lease and operation deed, which provided for resolution of disputes by mechanism of arbitration. It is contended that the petitioner served a notice dated 13.10.2016 invoking arbitration clause, with acknowledgement due, which was duly served on the respondent. Even after lapse of 60 days as provided under the lease and operation deed, the respondent failed to respond to the notice demanding arbitration. Hence these applications.

5. Mr. Peeyush Purohit, learned counsel for the respondent, opposed the application and argued that the dispute in the present case is essentially between landlord and tenant in relation to rented premises and is not an arbitral dispute. Learned counsel referred to and relied on Section 18 of the Rajasthan Rent Control Act, 2001 (for short, ''the Act of 2001'') and argued that according to the aforesaid provision, notwithstanding anything contained in any other law for the time being in force, in the areas to which this Act extends, only the Rent Tribunal and no Civil Court shall have jurisdiction to hear and decide the petitions relating to disputes between landlord and tenant and matters connected therewith and ancillary th

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