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High Court Of Madhya Pradesh
K. L. SHRIVASTAVA
NATIONAL AIRPORT AUTHORITY - Appellant
Versus
VIJAYDUTT - Respondents
Misc. Appeal 350 Of 1983
Decided On : 09/27/1989
ARBITRATION - APPOINTMENT OF ARBITRATOR - DISPUTE BETWEEN LICENSEE AND LICENSOR - ARBITRATION CLAUSE IN AGREEMENT - REVOCATION OF LICENSE - APPLICABILITY OF PUBLIC PREMISES (EVICTION OF UNAUTHORIZED OCCUPANTS) ACT, 1971 - GRANT OF TEMPORARY INJUNCTION - PRINCIPLES.
Fact of the Case:
The respondent, a licensee of a restaurant at an airport, filed an application under Section 8 of the Arbitration Act, 1940, seeking the appointment of an independent arbitrator to resolve a dispute with the appellants, the licensors, regarding the period of the license and the amount of arrears of license fee payable. The respondent also sought a temporary injunction restraining the appellants from dispossessing him from the restaurant premises and from granting a license to any other person.
Finding of the Court:
The court held that the respondent's possession of the premises was 'juridical possession' protected by law against wrongful dispossession, but it was not 'lawful possession'. The court also held that the appellants' intention to evict the respondent under the Public Premises (Eviction of Unauthorized Occupants) Act, 1971, did not amount to a wrongful act, as they were seeking to recover possession through judicial process. The court further held that the grant of a temporary injunction was an equitable remedy and that, in the circumstances of the case, the respondent was not entitled to the relief.
Issues: 1. Whether there was an arbitration clause in the agreement between the parties and whether the respondent was entitled to the appointment of an independent arbitrator. 2. Whether the respondent was an 'unauthorised occupant' within the meaning of the Public Premises (Eviction of Unauthorized Occupants) Act, 1971, and whether the appellants were entitled to evict him under that Act. 3. Whether the respondent was entitled to a temporary injunction restraining the appellants from dispossessing him from the restaurant premises and from granting a license to any other person.
Ratio Decidendi: 1. The court held that the correspondence between the parties clearly spelt out an agreement for arbitration, and that the respondent was entitled to the appointment of an independent arbitrator. 2. The court held that the respondent was not an 'unauthorised occupant' within the meaning of the Public Premises (Eviction of Unauthorized Occupants) Act, 1971, as he had been in possession of the premises pursuant to a license granted by the appellants. 3. The court held that the respondent was not entitled to a temporary injunction, as the appellants were not threatening to dispossess him by doing any wrongful act, and as the respondent had not come with clean hands.
Final Decision: The appeal was allowed, the impugned order was set aside, and the respondent's application for temporary injunction was dismissed.
( 1 ) THIS appeal is directed against the order dated 22-8-83 passed by the 7th Addl. Judge to the District Judge, Indore in C. S. No. 38-B/83 registered on the respondent's application under Sec. 8 of the Arbitration Act, 1940 (for short 'the Act'), whereby the latter's application under O. 39. R. 1-2, C. P. C. , 1908 (for short the Code) read with S. 41 of the Act has been partly allowed.
( 2 ) CIRCUMSTANCES giving rise to this appeal are these. In pursuance of the advertisement by the Union of India now represented by the National Airport Authority (the appellant No. 1), and its officers the Director General, Civil Aviation, New Delhi (appellant No. 2), the Regional Director and Estate Officer, Civil Aviation, Bombay (appellant No. 3) and the Aerodrome Officer, Civil Aerodrome Indore (the appellant No. 4) tender was invited for running the Indore Airport restaurant for a period of three years from the date on which possession of the restaurant premises is handed over to the successful tenderer. The respondent Vijaydatta who runs his business under the name and style of M/s. Datta and Co. , Manorama Ganj, Indore had submitted his tender quoting annual licence fee of Rs. 1160/- and his tender was accepted on 1-6-79.
( 3 ) AS the restaurant premises were in possession of ex-caterer and litigation was pending in connection therewith, the respondent could not be put in possession of the restaurant premises. He was, therefore, initially required to carry on his business in a room.
( 4 ) IT was subsequently on 3-11-89 that he was given possession of a part of the restaurant premises minus the three rooms. Later on 3-9-80 he was put in possession of three rooms also but not before a part of restaurant premises measuring 130 sq-ft. was taken away from his possession due to alterations in the building.
( 5 ) IN the circumstances set forth above, the Aerodrome Officer issued the letter dated 17-9-82 to the respondent. The letter is in these terms:-"notwithstanding this office letter No. ID/es-7/4567-68 dated the 27th March 1982 calling upon you to pay the arrears of L. F. kindly refer to your application through your lawyer dated 20-11-81 addressed to the Director General of Civil Aviation, New Delhi and the discussion on this subject with the Director of Finance and Accounts and Regional Director, Bombay Region, Bombay on 3-7-82 in the office of the Aerodrome Officer. Civil Aerodrome, Indore. ""following discussion, the decision arrived at by the Director General of Civil Aviation, New-Delhi is being conveyed as follows:- 1) Since from 9-6-79 to 2-11-79 only Room No. 12 measuring 217. 29 sq-ft. was handed over. Licence fee for this period will be charged at Rs. 50. 71 P. M. 2) As the restaurant premises were handed over w. e. f. 3-11-79 the licence fee w. e. f. this date will be charged at Rs. 1160/- P. M. the tendered amount. 3) But since 3 rooms measuring 208. 50 sq. ft. in the restaurant premises were handed over only on 2-9-80 and an area roughly measuring 120 sq, ft. was removed from Dining Hall due to modification in the terminal building the Director General of Civil Aviation, New Delhi is pleased to decide that as a compensation the Snack Bar measuring 192 sq. ft. shall be made available in addition to Restaurant premises as and when ready. In addition the licence period of 3 years will count from 3-9-80 (the day entire Restaurant premises were handed over) i. e. the licence period will be extended up to 2-9-83. ""in accordance with the decisions of the Director General of Civil Aviation, New Delhi the arrears of Licence fee to be paid have been calculated and shown in the enclosed statement amounting to Rs. 28,520. 27. ""accordingly this notice is served, requesting you to pay the arrears of Licence Fees amounting to Rs. 28,520. 27 and sign the agreement, already forwarded to you vide this office letter No. ID/es-7/4782-84 dated the 11th March, 1982 within 15 days of issue of this notice, failing which a
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