JYOTI LTD Vs. E I H LIMITED

JUDGEMENT

(1.) Objections by the defendant under the Arbitration Act, 1940 to the arbitral award dated 6th November, 2001 and as corrected on 24th December, 2001 are for consideration. The arbitrator was appointed vide common order dated 28th February, 1996 in suit No.622A/1995 filed by the plaintiff and suit No.1808A/1995 filed by the defendant, both for appointment of arbitrator. On demise of the appointed arbitrator, vide order dated 30th July, 1998 in OMP.No.160/98 the arbitrator who rendered the award was appointed as the sole arbitrator to continue with the proceedings.

(2.) Disputes arose between the parties out of an agreement titled Hotel Operation Agreement dated 8th August, 1980 between the parties. Under the said agreement, the plaintiff being entitled to land, building and super-structure collectively known as Gulab Bhawan and later christened as Oberoi Palace Hotel at Srinagar, allowed the defendant to operate the said hotel. The said agreement was for a term of 20 years. The agreement was terminated by the parties by mutual consent on 18th June, 1993. Even prior to the Hotel Operation Agreement dated 8th August 1980, the property had been let out to by owners thereof and who now control the shares of the plaintiff to Rai Bahadur M.S. Oberoi since the year 1954 and the hotel was being run therein. However, the lease was terminated w.e.f. 1st December, 1975 and thereafter a Hotel Operation Agreement dated 24th November, 1975 was entered into between the parties hereto. That was followed by the agreement dated 8th August, 1980 aforesaid.

(3.) The plaintiff made the following claims against the defendant before the arbitrator: