CARONA LIMITED Vs. SUMANGAL HOLDINGS

JUDGEMENT

(1.) An Arbitration Petition in which the Appellant sought relief under Section 9 of the Arbitration and Conciliation Act, 1996, has been dismissed by Mr.Justice D.K. Deshmukh on the ground that since the dispute between the parties arises out of an agreement of leave and licence, the Presidency Small Causes Court has exclusive jurisdiction over the subject matter under Section 41 of the Presidency Small Cause Courts Act, 1882. The Learned Single Judge has, in taking this view, relied upon his judgment dated 22nd August 2005 in Siemens Ltd. vs. Captech Online Pvt. Ltd., Arbitration Petition No.99 of 2004

(2.) The Appellant in the Arbitration Petition, out of which these proceedings arise, sought the following reliefs:

(3.) By a leave and licence agreement, the Appellant agreed to permit the Respondent, use and occupation of the premises in dispute for a period of nine years from 10th March 1997 until 9th March 2006. An arbitration clause is contained in the leave and licence agreement. A service agreement and a deposit agreement were also entered into between the parties and the Respondent is stated to have deposited an interest free amount of Rs.2 crores with the Appellant. In pursuance of the licence granted by the Appellant, the Respondent is alleged to have inducted a sub-licensee. Disputes have arisen between the parties and there was an exchange of correspondence to which a reference has been made in the Arbitration Petition. The Appellant claims to have terminated the leave and licence agreement by a notice of termination. The Arbitration Petition contains an averment to the effect that the Respondent has instituted a declaratory suit in the Court of Small Causes claiming tenancy rights in the premises.