SHIVANI TEXTILE LTD Vs. SMS DEMAG PVT LTD

JUDGEMENT

(1.) The present petitions have been filed challenging the impugned awards dated 12th April, 2007. By the impugned award, the three-member Arbitral Tribunal, awarded various claims in favour of the Respondent. The background of the petition is that one M/s Ganga Automobiles had entered into a lease agreement dated 14th October, 1994 with M/s Indomag Steel Technology Pvt. Ltd., now known as SMS Demag Pvt. Ltd. (claimant in the arbitration/respondent herein) (hereinafter "tenant") in respect of flats in Ganga Plaza 81/1, Adchini, Sri Aurobindo Marg, New Delhi. The said lease related to lower ground floor and ground floor. On 1st November, 1997, M/s Pasupati Fincap Ltd. and M/s Shivani Textiles Limited (formerly M/s. Pasupati New Tec Ltd.) (respondents in the arbitration/petitioners herein) (hereinafter "Petitioners"), informed the tenants that they had purchased rights in the lower ground floor and ground floor of the property. The tenant i.e. the claimant attorned to the new owners and started paying rent. However, notice of termination was issued by the tenant on 20th December, 2001 by which the tenant informed the petitioner that they would continue to occupy the third floor and fourth floor. Disputes arose in respect of the said termination as the security deposit which was originally paid by the tenant to M/s Ganga Automobiles the earlier landlord, was not refunded.

(2.) The three-member Tribunal which was constituted held in favour of the tenant in the following terms: -

(3.) The grievances in the present petitions are two, namely: -