2007 (8) TMI 777 - SC - Indian Laws

Summary

Issues Involved:
1. Validity of the High Court's order directing arbitration.
2. Payment of arrears of rent, water & sewerage tax, and interest.
3. Jurisdiction of the Supreme Court u/s Article 142 of the Constitution of India.

Summary:

1. Validity of the High Court's Order Directing Arbitration:
The appellant-Sansthan challenged the High Court's order which set aside the Additional District Judge's decision and directed the matter to arbitration as per the arbitration clause in the lease agreement. The Supreme Court upheld the High Court's decision, stating that the photocopies of the lease agreements could be taken on record u/s 8 of the Arbitration and Conciliation Act, 1996, to ascertain the existence of an arbitration clause. The dispute was deemed arbitral.

2. Payment of Arrears of Rent, Water & Sewerage Tax, and Interest:
The appellant-Sansthan claimed arrears of rent, water & sewerage tax, and interest. The respondent-Corporation disputed these claims, stating that payments had been made as per interim orders of the Supreme Court. The Supreme Court noted discrepancies in the calculation statements submitted by both parties. The Court held that these disputed claims should be adjudicated by an Arbitrator as per the arbitration clause in the lease agreement.

3. Jurisdiction of the Supreme Court u/s Article 142 of the Constitution of India:
The appellant-Sansthan sought relief u/s Article 142 of the Constitution of India for payment of arrears and interest. The Supreme Court emphasized that its power u/s Article 142 should be exercised to do complete justice but should not bypass existing legal provisions unless there is manifest illegality or palpable injustice. The Court found no such circumstances in this case and declined to grant the relief sought by the appellant-Sansthan.

Conclusion:
The Supreme Court dismissed the appeal, affirming the High Court's order directing arbitration. The Court clarified that the observations made in the judgment should not be construed as an expression of opinion on the merits of the case, which should be adjudicated by the Arbitrator(s) in accordance with law. The parties were directed to bear their own costs.