MTNL Vs. S.P.S. RANA

JUDGEMENT

(1.) BY this petition under Section 34 of the Arbitration & Conciliation Act, 1996, the petitioner has filed objections against an award dated 9.8.2007 passed by the learned Arbitrator in favour of the respondent and against the petitioner for a sum of Rs.14,14,261.00.

(2.) BRIEF facts relevant for the purpose of deciding this petition are that the petitioner was a lessee in respect of premises no.GN-4, Vishal Enclave New Delhi and respondent was the lessor. The premises was leased out to the petitioner vide a registered lease deed dated 18.8.1999 at rent for a period of three years with a stipulation for renewal. It was stipulated in this lease deed of 18.8.1999 that after three years if the lease is renewed the rent will be increased by 15%. In terms of clause 3 of the lease deed, it was respondent/lessor, who was to pay the house tax/property tax to MCD. The lessor did not pay house tax as a result, MCD attached the rent. After issuance of attachment orders under Section 162 of DMC Act, petitioner sent the attached rent to MCD. This order of attachment of rent was withdrawn by MCD on 19.9.2003. The lease had also expired in August, 2002. The parties had started negotiating for renewal of the lease. The correspondence shows MTNL/Petitioner was not interested in renewing the lease with increased rent thus, after negotiations it was agreed by the respondent that lease deed will be renewed on the same old rent and same terms and conditions. A new lease deed was signed between the parties and registered on 8.10.2003 w.e.f. 18.8.2002 for a period of three years.

(3.) BEFORE the learned Arbitrator, respondent raised 11 claims and the Arbitrator framed following issues in respect of claims as made by the respondent: