TARA PROPERTIES PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner in this application under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter the Act) calls in question an award dated May 16, 2007 of the arbitrator, which was made in relation to the dispute between the parties arising out of hiring of premises no.13, Camac Street, Kolkata (hereafter the said premises) by the respondent no.1.

(2.) THE 6th, 7th, 8th and 9th floors of the said premises (hereafter the leasehold area) were let out in favour of the respondent no.1 at a monthly lease rental of Rs.22,224/- for a term of two years w.e.f. December 1, 1971 in pursuance of a deed of lease of even date executed by and between the petitioner and the President of India. THE deed contained a condition for renewal. Despite expiry of two years w.e.f. December 1, 1971, the respondent no.1 did not seek renewal of the lease. It also did not vacate any portion of the leasehold area. THE lease rent was also not increased.

(3.) THE arbitrator made his award on March 30, 1984. THE claim of the petitioner for de- hiring was rejected. However, the arbitrator allowed revision of rent at fresh rates from June 1, 1977 till June 11, 1984 and also directed payment of interest. It was further observed by the arbitrator that rent w.e.f. June 12, 1984 may be determined in terms of Government of India, Ministry of Defence's letter dated June 2, 1984.