SACHIN CHOPRA Vs. PADMA REDDY

JUDGEMENT

(1.) This Arbitration Application under Section 11 of the Arbitration and Conciliation Act , 1996 (for brevity "the Act") is filed by the applicant seeking appointment of an Arbitrator for adjudication of the dispute between the applicant and the respondent in respect a registered Lease Deed bearing No. 2618 of 2017, dt. 04. 05. 2017, in respect of super built up area of 3,170 sft. on Third Floor and 3,170 sft. on Fourth Floor of a Commercial Building "Disha Banjara" constructed on Plot No. 8-2-684/3/16 and 17, situated at Banjara Green Colony, Road No. 12, Banjara Hills, Hyderabad.

(2.) The case of the applicant is that he is the Tenant/Lease Holder and respondent is the absolute owner and possessor of the Commercial Building, namely "Disha Banjara" consisting of Cellar, Sub-cellar, Ground, First, Second, Third and Fourth Floors, constructed on Plot No. 8-2-684/3/16 and 17, situated at Banjara Green Colony, Road No. 12, Banjara Hills, Hyderabad. The applicant entered into a registered Lease Deed bearing No. 2618 of 2017, dt. 04. 05. 2017 in respect of super built up area of 3,170 sft. on Third Floor and 3,170 sft. on Fourth Floor of the said building. However, due to the leakage of rain water and unfinished fourth floor, the applicant could not start his business as per the schedule. Despite several requests made by the applicant, as the respondent did not take any steps for prevention of water leakage, the applicant got issued a Legal Notice dt. 13. 11. 2017 to the respondent demanding to pay a sum of Rs. 35,00,000/- towards damages, which include damage of the material procured for interiors, furniture and fittings, besides loss of business for not starting as per the schedule, failing which to initiate legal action. As there is no response from the respondent, the applicant has filed the present Arbitration Application invoking Clause 29 of the Lease Deed dt. 04. 05. 2017 seeking appointment of an Arbitrator for adjudication of the dispute between the parties.

(3.) Counter affidavit is filed by the respondent denying the allegations made by the applicant, wherein it is stated that the Arbitration Application is liable to be dismissed in limine, as the Arbitration Clause in the Lease Deed dt. 04. 05. 2017 categorically states that only if the parties fail to resolve the disputes by amicable arrangement, either party can refer the matter to arbitration of a common Arbitrator, if agreed upon, otherwise two Arbitrators, one being appointed by each party. It is also contended that the applicant never proposed the Arbitrator of his choice nor intimated the respondent about resolution of the dispute through arbitration. As the applicant has not nominated the Arbitrator, he has no locus standi to file the present Arbitration Application under Section 11 of the Act and on this ground alone, the present Arbitration Application is liable to be dismissed.