ROHIT BHASIN Vs. NANDINI HOTELS

JUDGEMENT

(1.) The petitioner has filed the present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of a sole independent arbitrator.

(2.) As per petition, the facts are that the International Recreation Parks Pvt. Ltd. (IRPPL) entered into a Memorandum of Understanding dated 20th June, 2006 with the petitioners for transfer of the leasehold rights of the premises bearing No.309A on the Third Floor of Tower "A admeasuring approx. 90.11 sq. mts. (940 sq. ft.) situated at Plot No.A2, Sector 38A, Noida, District Gautam Budh Nagar, Uttar Pradesh (hereinafter referred to as the "said premises") to the petitioners. Agreement for sub-lease dated 19th July, 2006 executed between IRPPL and the petitioners whereby the petitioners became the owners of the said premises. Clause 5 of the said agreement to sub-lease authorized IRPPL to induct a licensee in the said premises and execute all or any document required for the purpose on behalf of the petitioners.

(3.) Irppl inducted the respondents as the licensee in the said premises vide an agreement to license dated 23rd June, 2007. Article 3.1 of the license agreement provided a licnese fee of Rs. 110 per sq. ft. of the total super area (970 sq. ft.) amounting to a license fee obligation of Rs. 1,06,700/- to be paid by the respondents per month for the initial period of three years. It was further agreed that the initial license would be for a period (term) of three years only and if the license was to be renewed for a second term as per the license agreement, the license fee would be increased by 15% and therefore, the license fee for the second term would be Rs. 126.50 per sq. ft. or Rs. 1,22,705/- per month for the said second term. Article 15.2 of the said license agreement provided for disputes, differences and disagreement arising out of, in connection with or in relation to this agreement, which cannot be amicably settled shall be finally decided by arbitration to be held in accordance with the Arbitration and Conciliation Act, 1996. Clause 15.4 provided for a sole arbitrator to be appointed by the Licensor (petitioners herein). Further, vide Article 10.2, IRPPL was vested with the right to sell, transfer or create third party rights with respect to the said premises during the period of license to any third party. Further upon the petitioners purchasing the said premises from IRPPL, the said petitioners have now become the owners of the premises and have stepped into the shoes of IRPPL.