SWASHBUCKLER HOSPITALITY PVT. LTD Vs. AVDESH MITTAL

JUDGEMENT

(1.) The present petition is filed under Sec. 11(6) of the Arbitration and Conciliation Act, 1996, seeking the appointment of a sole arbitrator to adjudicate the disputes inter-se having been arisen between the parties out of the Letter of Intent dtd. 23/12/2022.

(2.) A bare perusal of the material on record reflects that Respondent No.1 being the owner/ proprietor of the Property E-582, Greater Kailash-II, New Delhi, agreed to lease the same to the Petitioner, leading to the parties executing the Letter of Intent dtd. 23/12/2022. Respondent No.1 represented to the Petitioner that the property is free from encumbrances and thereafter, obtained Rs.40,00,000.00 from the Petitioner towards a Non-Refundable Security Deposit. However, on 31/2/2023, the aforementioned property was sealed vide Court Order dtd. 12/10/2022 passed by the Ld. Chief Metropolitan Magistrate, Saket Court, Delhi and Order of the Presiding Officer, DRT-II, dtd. 28/10/2022.

(3.) Pursuant to the sealing of the premises, the Petitioner asked for the refund of the security deposit of Rs.40,00,000.00 given to Respondent No.1. However, Respondent No.1 refused to refund it. In response to this, the Petitioner invoked arbitration vide notice dtd. 23/5/2023 arising out of the arbitration clause contained in the Letter of Intent dtd. 23/12/2022 in clause 24 which reads as under: