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SUVIR SEHGAL
CSJ Infrastructure Private Limited – Appellant
Versus
Talwar Jewellery House – Respondent
JUDGMENT
Mr. Suvir Sehgal, J. (ORAL).
By way of instant petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 (for short "the Arbitration Act"), petitioner has approached this Court for appointment of an Arbitrator to adjudicate the disputes and differences between the parties.
2. Counsel for the petitioner submits that the petitioner leased out a commercial premises to the respondent and a lease deed dated 12.11.2014, Annexure P-2, was executed. Counsel submits that the respondent defaulted in the payment of the lease money and the petitioner issued a notice dated 24.09.2020, Annexure P-5, and part payment was made. Counsel submits that by notice dated 02.11.2020, Annexure P-7, lease was terminated and the petitioner approached the Rent Controller under the East Punjab Urban Rent Restriction Act, 1949 (for short "the Rent Act") seeking his eviction. Counsel submits that respondent filed an application under Section 10 of the Rent Act for restoration of electricity and the petitioner simultaneously filed applications under Section 5 and 8, respectively, of the Arbitration Act for referring the dispute to an Arbitrator. Counsel submits that by order dated 05.02
Disputes regarding recovery of lease amounts under an Arbitration Clause are arbitrable and do not fall under the jurisdiction of the Rent Controller.
Eviction petitions under rent control laws are under the exclusive jurisdiction of the Rent Controller and not arbitrable.
Eviction matters cannot be referred to arbitration under the Arbitration and Conciliation Act if statutory protections apply.
The court determined that the landlord-tenant dispute constitutes an arbitrable issue and appointed an arbitrator due to the parties' failure to agree on one.
The court held that financial hardship cannot prevent arbitration based on a valid arbitration agreement if an arbitrable dispute is present.
Appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 in cases of serious breach of lease terms.
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