VELAN HOTELS LTD. Vs. MOHAN CLOTHING PVT. LTD.

JUDGEMENT

(1.) Appellant had developed a shopping mall-cum-entertainment complex by name "The Velan Esplanade". Appellant entered into Leave and License Agreement dtd. 12/12/2012 with first respondent and has agreed to grant the store space, being Shop No.E2. The license fee for the first year was Rs.85,176.00 per month, excluding applicable service tax.

(2.) The licensee was liable to pay the license fee, maintenance charges, service tax and all other charges, expenses payable for the licensed premises on and from the date of (a) completion of fit out period of 60 days; or (b) commencement of mall operations by appellant, whichever is later, irrespective of whether the licensee has commenced retail operations of store or not. The license agreement also provided for an initial lock-in period of 18 months. During the lock-in period, only the licensor would be entitled to terminate the agreement for reasons mentioned in the agreement.

(3.) Appellant handed over possession of shop No.E2 to first respondent for fit out. Disputes arose and first respondent commenced arbitration. Second respondent was the sole arbitrator. First respondent claimed a sum of Rs.44,58,691.00 together with interest. Appellant filed a defence denying liability and also filed a counter-claim claiming a sum of Rs.24,46,393.00 towards rental and other charges. The Arbitrator passed an award in favour of first respondent holding that first respondent was entitled to refund of a sum of Rs.9,82,800.00 that it had paid to appellant as security deposit; and a further sum of Rs.22,79,581.00 that first respondent had spent on fit outs and interior works in the shop. First respondent's claim for damages in a sum of Rs.10,00,000.00 was reduced to a token sum of Rs.50,000.00. Interest of 9% was granted on the amounts payable. Cost of Rs.50,000.00 was also awarded. Appellant's counter-claim for Rs.24,46,393.00 towards license fee, maintenance charges, etc., was rejected.