LOYOLA SCHOOL Vs. MEGHA KUMAR

JUDGEMENT

(1.) The petitioner is defendant in O.S.No. 42 of 2009 on the file of the Court of the V Senior Civil Judge, City Civil Court, Hyderabad. The suit was filed by respondents for recovery of possession of suit schedule property and for past and future mesne profits as well as compensation for use and occupation of suit schedule property, which is a house situated at Vijayanagar Colony, Hyderabad, wherein the petitioner is running Loyola School. The petitioner filed application being I.A.No.415 of 2009 under Section 8(1) of Arbitration and Conciliation Act, 1996 (the Act, for brevity) to refer the dispute to arbitration in terms of clause 11 of the rental agreement dated 27-6-1994 executed by and between Mrs. Manju Kumar and the petitioner herein. The said application was dismissed by the Court below on 18-8-2009. Aggrieved by the same, defendant filed the present revision petition under Article 227 of Constitution of India.

(2.) The brief background facts are as follows. The suit schedule property belongs to grandfather of plaintiffs, Sri Viswanath, who was an Ex-serviceman. He executed a Will on 29-1-1993 bequeathing the property to plaintiffs and appointed plaintiffs' mother Smt. Manju Kumar and their paternal aunt Smt. Kamalesh Takral as executors of the Will. Latter executed General Power of Attorney (GPA) in favour of former who under rental agreement dated 27-6-1994 inducted the defendant as a tenant for running a school for a period of eleven months commencing from 01-7-1994 with option to extend the lease by mutual consent upto five years ending 30-6-1999. Clause 11 of rental agreement provides that all disputes arising between the parties under the agreement shall be resolved by mutual understanding and goodwill or any third person acceptable to both.

(3.) As per the Will, the executors registered the property in favour of plaintiffs vide document No. 4632 of 2008, dated 13- 11-2008. Thereafter, they sent a quit notice under Section 106 of Transfer of Property Act, 1882, on 26-11-2008 determining the tenancy by giving fifteen (15) days notice and also alleging that defendant did not pay rents from 01-5-1999. The defendant sent reply alleging that the executors entered into agreement of sale on 27-6-1994 to sell suit schedule property to defendant for a consideration of Rs. 17,00,000/-, that the entire amount was paid to executors and that they ceased to be tenants. It was also alleged that there was no renewal of rental agreement in June 1999. The defendant also denied jural relationship of landlord and tenant alleging that they became owners of the property.