IMPORTANT POINT
The court reaffirmed that the existence of an arbitration agreement is sufficient for appointing an arbitrator, emphasizing minimal judicial interference in arbitration processes.

JUDGMENT :

Nupur Bhati, J.

1. The present Arbitration Application has been filed by the applicant under Section 11(6) of the Arbitration and Conciliation Act, 1996 (‘Act of 1996’) seeking appointment of an Arbitrator to resolve the disputes between the parties in accordance with the provisions contained in the Act of 1996 and the arbitration agreement contained in Clause 12.10 of the registered Lease Deed dated 11.01.2023. It is also prayed that the Court may direct the arbitration proceedings to be conducted at Jodhpur, taking into account the distinction between the seat of arbitration and venue thereof. Certain other ancillary relief(s) have also been sought by the appellants.

2. Briefly stated, the facts of the case are that the applicant and respondent entered into a registered Lease Deed dated 11.01.2024 (Annex. 2), whereby it was agreed that the respondent would hand over the possession of 5th Floor and 6th Floor of the Chetak Mall situated in Udaipur, Rajasthan, to the applicant. After the possession of the said premises was handed over to the applicant on 01.05.2023, the respondent tried creating third party rights over the said premises.

3. Thus, aggrieved of the said actions of the respondent, the applicant sent a letter dated 17.05.2023 (Annex.4) whereby the applicant enumerated a list of work pending completion to the respondent. When the same was not resolved, the applicant sent a legal notice dated 02.06.2023 (Annex. 5), bringing to notice the violations made by the respondent to the said registered lease deed entered between both the parties dated 11.01.2023 (Annex.2) and also invoking the arbitration clause, i.e. Clause 12.10 of the said lease deed.

4. In the absence of any attempts made by the respondent to abide by the contractual obligations as per the registered Lease deed dated 11.01.2023 (Annex.2), the applicant filed an application (Annex.6) under Secion 9 of the Act of 1996 before the learned Commercial Court, Udaipur wherein the learned Commercial Court, Udaipur vide order dated 28.06.2023 (Annex.7) directed the respondent to maintain the status quo of the said property. Subsequently, the applicant has preferred an application under Section 11(6) of the Act of 1996 for the appointment of an arbitrator for the resolution of the disputes, being authorised vide the resolution passed by the Board of Directors, dated 25.09.2023 (Annex.1).

5. Learned counsel for the applicant submitted that even after the existence of a registered lease deed dated 11.01.2023 (Annex.2), the respondent has been trying to create third party rights over the said property and that the respondent has also removed the signage of the applicant put upon the said premises, which the applicant put by virtue of the registered lease deed dated 11.01.2023 (Annex.2), the photographs (Annex.3) of the same are also attested with the application.

6. Learned counsel for the applicant submitted that the applicant has made numerous attempts to bring to notice the violations of the contractual obligations of the lease dated dated 11.01.2023 (Annex.2) and has also tried resolving the dispute, but the attempts have been unsuccessful and thus, the applicant had to apply for an interim relief under Section 9 of the Act of 1996, wherein the learned Commercial Court, Udaipur has dismissed the application on the ground that the applicant has instituted an application under Section 11(6) before this Court.

7. Learned counsel for the applicant also submitted that there exists an arbitration agreement inter-se the applicant and the respondent, merely based on the ground that the applicant did not specify the name of the Arbitrator in the legal notice dated 02.06.2023 (Annex. 5), will not lead to the conclusion that the applicant has not invoked the arbitration agreement.

8. Per contra, learned counsel for the respondent submitted that a bare perusal of the Arbitration Clause as stipulated in the lease deed dated 11.01.2023 (Annex.2) would reveal that the applicant