VALUE SOURCE MERCANTILE LTD. Vs. SPAN MECHNOTRONIX LTD.

JUDGEMENT

(1.) This appeal under Section 37 of the Arbitration and Conciliation Act, 1996 impugns the order dated 7th February, 2014 of the learned Single Judge of this Court in OMP No.1258/2013, under Section 9 of the said Act, filed by the respondent. The appeal came up for hearing on 18th March, 2014 when the counsel for the respondent appeared on advance notice and though notice of the appeal was not issued but the matter was adjourned from time to time to enable the parties to amicably settle the same. Finding the parties to be not able to settle, a direction for their appearance in person before this Court was made.

(2.) Undisputed facts are that the appellant, in or about February, 2012 took on lease from the respondent, office at B-1 & B-2 Basement ad measuring 5030 sq. ft. on plot No.H-10, Express Arcade, Netaji Subhash Place, Delhi on rent of Rs.1,62,000/- per month and on the other terms and conditions contained in a Lease Agreement dated 25th February, 2012 signed by the parties. The appellant, after October, 2012 stopped paying the lease rentals and issued a notice dated 1st November, 2012 to the respondent for vacation of the office at B-2 only, while wanting to continue to occupy the office situated at B-1. The respondent got sent a reply dated 14th December, 2012 to the aforesaid notice inter alia contending that the lease was composite, of commercial units bearing No.B-1 & B-2 and the appellant could not terminate the lease of part of the premises. The appellant was thus called upon to either vacate the entire leased premises or to pay the rent due thereof.

(3.) Upon the appellant neither paying the rent nor vacating the leased premises, the respondent, on the basis of the arbitration clause in the Lease Deed, filed the petition under Section 9 of the Arbitration Act from which this appeal arises, seeking a direction to the appellant for payment of the dues as per the said Lease Agreement and for a direction for delivering the possession of the premises.