BAJAJ ALLIANZ GENERAL Vs. ASHOK SARIN

JUDGEMENT

(1.) In these petitions filed under Section 34 of the Arbitration and Conciliation Act, 1996 (The Act), the petitioners have challenged the common award made by the learned Arbitral Tribunal consisting of three learned Arbitrators, whereby the Arbitral Tribunal has, inter alia, awarded damages in favour of the respondent landlords and against the petitioner/tenant from 01.09.2007 onwards, on the ground that the petitioner had not exercised its right of renewal granted under the lease deeds executed by it with each of the respondents within time and prior to the termination of the respective lease deeds by the respondents.

(2.) The respondents are the owners of the commercial premises in question which was leased out to the petitioner company. The first set of lease deeds were executed on 01.09.2001 commencing from 01.09.2001 for a period of three years with a clause for renewal for further period of three years at the option of the petitioner. These were registered agreements. Another set of lease deeds were executed and registered on 25.11.2004, for a period of three years commencing from 01.09.2004. These agreements also contained a renewal clause. The dispute between the parties that was taken to arbitration was whether the petitioner exercised its right of renewal as per the terms of the registered deeds, and if not, whether they are liable to compensate the respondents/claimants/landlords for the damages suffered by them and to pay the market rent for the period during which the petitioner continues in possession despite termination of the leases, and whether they not liable to vacate the premises in question. These issues have been answered by the Tribunal unanimously in favour of the respondents.

(3.) Clause 2 of the lease deeds dated 25.11.2004 contained identical renewal clause, and the same reads as follows: