BOUGAINVILLEA MULTIPLEX & ENTERTAINMENT CENTER PVT. LTD. Vs. INDIA TOURISM DEVELOPMENT CORPORATION LIMITED

JUDGEMENT

(1.) This is a petition under Section 11 (6) of the Arbitration and Conciliation Act, 1996 ('Act') by Bougainvillea Multiplex & Entertainment Center Pvt. Ltd. ('BMEC') seeking appointment of an Arbitrator in the disputes between the parties that have arisen out of a licence deed dated 1st March, 2013 executed by the India Tourism Development Corporation Limited ('ITDC') in favour of BMEC permitting it to operate an international cuisine restaurant-cum-night club under the name and style of Stellar at Hotel Ashok, New Delhi.

(2.) In terms of the said licence deed, BMEC was granted a licence for a period of five years commencing from 9th January, 2013. BMEC was entitled to a one-time renewal after the expiry of the stipulated period in terms of Clause 2 of the licence deed. The licence fee was specified in Clause II (1). Under Clause IV (2), BMEC was not permitted to terminate the licence before the expiry of the period of licence except by giving a six months advance notice in writing. In the event BMEC terminated or abandoned the licence prior to the above said period of notice, it would be liable to pay liquidated damages (LD) equivalent to the licence fee payable to ITDC for the unexpired notice period.

(3.) Clause V of the licence deed concerned 'Applicable Laws & Notice' and sub-clause (1) therein read as under: