LAWS(BOM)-1995-11-22

VINAYAK BALKRISHNA SAMANT Vs. MAHANAGAR TELEPHONE NIGAM LIMITED

Decided On November 21, 1995
VINAYAK BALKRISHNA SAMANT Appellant
V/S
MAHANAGAR TELEPHONE NIGAM LIMITED Respondents

JUDGEMENT

(1.) BY this suit, the plaintiffs, who are described as petitioners in the suit, seek to file the arbitration agreement under section 20 of The Arbitration Act, 1940 (for short, the Act) in this Court as also an order of reference of plaintiffs claim against the defendants to arbitration in accordance therewith.

(2.) THOUGH short but an interesting question of law arises for consideration in the present proceedings. The circumstances giving rise to the present proceedings in which the question of law arises are these :

(3.) MR. Chitnis, the learned Counsel for the defendants, has submitted that the suit being misconceived is not maintainable as the arbitration agreement between the plaintiffs and the defendants has ceased to exist since the tenure of the said Deed of Lease dated 3rd September, 1984 in which the arbitration agreement contained has expired on 7th August, 1989 and thereafter the defendants have continued to occupy the said premises as monthly tenants of the plaintiffs. Mr. Chitnis has further submitted that while purporting to terminate tenancy of the defendants in respect of the said premises, the plaintiffs accepted the defendants as monthly tenants of the plaintiffs protected under the provisions of The Bombay Rent Act and the dispute pertaining to enhancement of monthly rent in respect of the said premises, in view of section 28 of The Bombay Rent Act is not referable to arbitration. Plaintiffs have submitted that the dispute between the plaintiffs and the defendants relating to reasonable rent in respect of the said premises payable by the defendants to the plaintiffs is referable to arbitration in accordance with the said arbitration agreement between the parties which has not ceased to be applicable. It is admitted position that the provisions of The Bombay Rent Act are applicable to the premises in question and the relationship of landlord and tenant between the plaintiffs and the defendants exist. Section 28 of The Bombay Rent Act reads as under :