LAWS(DLH)-2011-1-367

AIRPORTS AUTHORITY OF INDIA Vs. GROVER INTERNATIONAL LTD

Decided On January 28, 2011
AIRPORTS AUTHORITY OF INDIA Appellant
V/S
GROVER INTERNATIONAL LTD. Respondents

JUDGEMENT

(1.) BOTH arbitration suits have been filed by the two parties to the arbitration namely the Airports Authority of India (AAI) and Grover International Ltd. (GIL) under Sections 14 and 17 of the Arbitration Act, 1940 for filing of the arbitration award dated 1st June, 2000 in this Court. GIL in its suit being CS(OS) 1532A/2000 has also sought making of the award rule of the Court. Upon the award being filed in this Court, AAI filed objections thereto being I.A. No.550/2001 in CS(OS) 1507A/2000 and which objections now fall for adjudication. No objections to the award have been filed by GIL. However GIL in its suit has filed applications for interim relief.

(2.) ARBITRABLE disputes arose between the parties out of "Agreement regarding land for Five Star Hotel including Hotel Shopping Arcade" dated 7th September, 1989. In the said agreement AAI is described as lessor and the GIL as the lessee. AAI vide the said agreement granted lease to GIL of 28000 sq. mtrs. of land for a term of 30 years for the purpose of constructing and running of not less than 400 living rooms Five Star Hotel including the Hotel Shopping Arcade. After the expiry of the term of the lease, the Hotel with the fixtures and fittings was to become the property of AAI without payment of any further compensation. The said agreement in Clause 37 thereof provided for reference to the sole arbitration of a person to be appointed by the Chairman of the AAI, of all disputes and differences arising out of or in any way touching or concerning the agreement except those, the decision whereof was otherwise provided for in agreement or to which the Public Premises (Eviction of Unauthorized Occupants) Act, 1971 (PP Act) and the Rules framed thereunder were applicable.

(3.) THE said CS(OS) 2287/1994 under Section 20 of the Arbitration Act, 1940 was disposed of vide judgment dated 8 th May, 1995 in which it is recorded:-