RITA ARORA Vs. TANYA AUTOMOBILES PVT LTD

JUDGEMENT

(1.) FEELING aggrieved by the judgment and order dated 02.11.2013 passed by the District Judge, Lucknow in Regular Suit No.67/2013, the appellants have preferred this first appeal from order under Section 37 of the Arbitration and Conciliation Act, 1996 (for short, "the Act").

(2.) THE facts, in short, leading to this appeal are that a lease deed was executed between the appellants No.2 and 3 and the respondent no.3 in respect of two plots No.10 and 11 situate at Nawal Kishore Road, Hazratganj, Lucknow. As per the terms of the lease -deed, the period of lease was three years commencing from 01.02.2010. The rate of rent as agreed between the parties was Rs.1.26 lacs per month. One of the condition of the lease -deed was that on expiry of the term of lease on 31.01.2013, the respondent no.1 shall vacate the premises, but before the expiry of lease period, the appellants no. 2 and 3 will have no right to terminate the lease. It was also agreed that the respondent no.1 would use the furniture, fixtures and fittings, machines, equipments, computers, air -conditioners and generators etc. installed in the building and the respondent no.3 shall have liberty to modify, renovate, change or make addition as per the requirements. Apart from the lease -deed, a memorandum of understanding was also executed between the parties, wherein it was provided that the respondents shall run the workshop at their own expense and make investments from their own source and the appellants will not invest any amount and shall be liable to contribute 50% amount, which will be deducted from the share of the income of the appellants. The respondents paid a sum of Rs.1,16,50,000/ - as advance to the appellants, which was to be adjusted towards the share of profit of the appellants. It was also agreed that they shall share the profits and loss in equal share. There was an arbitration clause in the memorandum of understanding in which it was provided that in case of any dispute or doubt with regard to the terms and conditions of the agreement, the matter shall be referred to the Arbitrator. It also needs mention here that two Arbitrators, namely, Hon'ble Mr. Justice Rakesh Sharma (Retd.) and Hon'ble Mr. Justice U.K. Dhaon (Retd.) were nominated as Arbitrators. It was also provided in the agreement that the decision of the Arbitrator would be final and binding upon the parties.

(3.) THE dispute between the parties arose when the respondents did not vacate the premises after the expiry of the term of the lease. The appellants filed a petition under Section 9 of the Act before the District Judge, Lucknow. The appellants prayed that as an interim measure of protection the possession of the property, which is the subject matter of the dispute may vest with the appellants without any interference by the respondents or any person on their behalf.