Unregistered lease disputes are non-arbitrable and must be brought before the Competent Civil Court.

ORDER :

(Prayer: The original petition had been filed taking advantage of Section 11 (4) of Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to render an award on the disputes between the petitioners and the respondents pursuant to alleged breaches and violations of the lease agreement dated 10.01.2020.)

The original petition had been filed taking advantage of Section 11 (4) of Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to render an award on the disputes between the petitioners and the respondents pursuant to alleged breaches and violations of the lease agreement dated 10.01.2020.

2. It had been stated in the petition that the petitioners are the absolute owners of the premises Old No.64/1 and New Door No.103 Ramanayakkan Street, Nungambakkam, Chennai - 600 034.

3. The said premises had been leased out to the respondent company. The first respondent through the second and third respondents had entered into the lease agreement on 10.01.2020. The period of lease was for three three years. The lease amount had not been registered. The respondents had taken the premises on lease for residential purpose. The monthly rent was agreed to a sum of Rs.2,40,000/-. They had paid an advance of Rs.14,40,000/- which was paid in two instalments. The 1st instalment was paid on 14.01.2020 and the 2nd instalment was paid on 10.02.2020. The possession was handed over on 20.01.2020. It had been stated that there had been defaults in the payment of rent. It had also been stated that though there was an outstanding of Rs.64,80,000/-, the respondent had paid only a sum of Rs.19,42,500/-.

4. It is stated by the learned counsel for the petitioner that since there is a specific clause in the lease deed to settle disputes through arbitration, the disputes which have arisen have to be referred to an arbitrator for adjudication. It had been further stated that a legal notice had been issued on 20.12.2021 and a reply dated 10.01.2021 had been received, wherein the respondent had stated about the rents which had been paid by them and about the adjustments towards the dues and had also stated that it was their prerogative as lessee to appoint an arbitrator but however the respondents had not appointed an arbitrator. It is complained that since the respondents had not appointed an arbitrator, the present petition has been filed seeking for appointment of an arbitrator.

5. Notice had been issued and learned counsel had entered appearance on behalf of the respondents.

6. It is the contention of the respondents that since the terms of the lease signified a relationship as landlord-tenant the matter cannot be referred to arbitration, as a specific Act prevails to adjudicate the disputes between landlord-tenant. It is the very specific contention of the respondents that since a special law, The Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017 governs the tenancy between the petitioners and the respondents, the matter cannot be referred to arbitration.

7. Heard, Mr.M.Murali, learned counsel for the petitioners and Mr.L.Muralikrishnan, learned counsel for the respondents.

8. The basic facts are not disputed. The petitioners are the owners of the property bearing Old No.64/1 and New No.103, Ramanayakkan Street, Nungambakkam, Chennai - 600 034. It measures to an extent of 2190 sq.ft. It consists of a ground and two upper floors and consists of 5 numbers of 3 BHK residential apartments, along with car parking spaces. The aggregate build up area measures 6272 sq.ft.

9. The petitioners as lessors and the respondents as lessees had entered into an agreement dated 10.01.2020. The period of lease was for three years. The petitioners had handed over possession and the respondents have taken over possession. However, there is a dispute with respect to the lease amounts paid. The petitioners claim that there is a default in the payment of the lease amount, whereas the respondents in their