TERRA MANUFACTURING Vs. ALAGENDIRAA APPARELS PVT LTD

JUDGEMENT

(1.) THE application under Section 11 (6) and the petition under Section 9 of the Arbitration and Conciliation Act, 1996 are between the same parties and based on the same facts and are thus, dealt together.

(2.) THOUGH the Petitioner/applicant has, in the petitions referred to two agreements i. e. , (i) Mou dated 10th March, 2006 leading to Agreement dated 25th november, 2006 and (ii) Equipment Lease Agreement dated 23rd May, 2007 but the subject disputes are stated to be arising out of Equipment Lease Agreement dated 23rd May, 2007 only. The Respondent, in its reply, does not dispute the signatures on the said Equipment Lease Agreement dated 23rd May, 2007. Under the said Agreement, the Petitioner/applicant agreed to lease to the Respondent and the Respondent agreed to take on lease, equipment as defined in Schedule 1 of the said Agreement. The Respondent agreed to pay monthly rent of Rs. 6 lacs for the equipment to the Petitioner/applicant and in the event of default, agreed to pay interest at the rate of 2% per month. The equipment was agreed to be delivered to the Respondent at Mumbai. Clause 8 of the said Agreement provides that at the end of the term mentioned in the Agreement or upon earlier termination of the Agreement, the Respondent shall, at its own cost and expense, return the equipment to a location and in the manner designated by the petitioner/applicant. Clause 10 inter alia provided for termination of the agreement in the event of default of payment. The term of the Agreement was mentioned for eight years commencing from 23rd May, 2007.

(3.) THE said Agreement contains an arbitration clause as under: