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TMI Blog2024 (10) TMI 1123X X X X Extracts X X X X X X X X Extracts X X X X ..... 015, when the lease expired. The Public Premises Act would not even cast a shadow on this period. In so far as the dispute relating to this right of renewal is concerned, it depends on the terms of the agreement. The Public Premises Act neither bars nor overlaps with the scope and ambit of proceedings that were initiated under the Arbitration and Conciliation Act. Whether the High Court committed any error in appointing the arbitrator while exercising the jurisdiction under Section 11? - HELD THAT:- The revision of storage charges occurred during the subsistence of the contract. Its legality and propriety will depend on the terms of the agreement dated 26.09.2012. Similarly, the right of renewal will also be based on and a construct of the said agreement. These two disputes will undoubtedly arise out of the agreement between the parties and the resolution of such disputes is clearly covered by the arbitration clause. There are no hesitation in rejecting the petition and it is further held that the appellant must bear the costs for this unnecessary litigation which is quantified at Rs. 50,000/- - appeal dismissed. - PAMIDIGHANTAM SRI NARASIMHA And SANDEEP MEHTA , JJ. JUDGMENT PAMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t paid, it will be inferred that the respondent is not interested in retaining the facility. While the matter was pending, the storage charges were further revised w.e.f. 01.04.2015 by a letter dated 05.03.2015 when the respondent was informed that the tariff will be at the rate of Rs.177/- per sq. mtr. per month. 6. In turn, the respondent is said to have intimated the appellant that it is interested in continuing the facility but sought renewal of the agreement dated 26.09.2012 by also committing that any arrears due as per the original agreement would be cleared. 7. On 16.09.2015, the appellant is supposed to have rejected the request for renewal of the agreement and has in turn raised a demand of Rs. 16,10,004/. In view of the fact that the respondent had not vacated the premises despite the lease s expiry on 11.09.2015, the appellant invoked the provisions of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (hereinafter the Public Premises Act). 8. It is an admitted fact that even before the order of the Estate Officer under the Public Premises Act could be passed, the respondent is said to have vacated the premises on 13.11.2015. The Estate Officer any way p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said clause all disputes and differences arising out of or in any way touching upon or concerning the agreement have to be referred to the sole arbitration of any person appointed by the Managing Director of the Corporation. Award of such arbitrator shall be final and binding on the parties to the agreement. The arbitrator shall also decide the venue of arbitration and the cost of arbitration shall be borne by the parties as per the decision of the arbitrator. The arbitrator is required to give separate award in respect of each dispute or difference referred to him. Thus, the crucial words in Clause 16 are all disputes and differences arising out of or in any way touching upon or concerning the agreement. According to the petitioner, the agreement for dedicated warehousing entered into between the parties on 26.09.2012 clearly mentioned the rate of storage charge i.e. Rs. 131-00 per square meter per month. But the Corporation unilaterally enhanced the storage charge rate with effect from 01.11.2012 at the gross area rate of Rs.157-00 per Square meter per month and net area rate of Rs.216-00 per square meter per month. 13. The second area of dispute is with regard to extension ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In so far as the dispute relating to this right of renewal is concerned, it depends on the terms of the agreement. The Public Premises Act neither bars nor overlaps with the scope and ambit of proceedings that were initiated under the Arbitration and Conciliation Act. 14. Whether the High Court committed any error in appointing the arbitrator while exercising the jurisdiction under Section 11: We have already extracted the relevant portion of the order passed by the High Court. The revision of storage charges occurred during the subsistence of the contract. Its legality and propriety will depend on the terms of the agreement dated 26.09.2012. Similarly, the right of renewal will also be based on and a construct of the said agreement. These two disputes will undoubtedly arise out of the agreement between the parties and the resolution of such disputes is clearly covered by the arbitration clause (Cl. 16 of the agreement). After the recent decision of this court in SBI General Insurance Co. (supra) the remit of the referral court to consider an application under Section 11(6) is clear and unambiguous. We need to just examine the existence of an arbitration agreement. The context is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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