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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 ..... der Section 11 of the Arbitration and Conciliation Act, 1996 ('hereinafter referred as the Act'). Having examined the matter in detail, it is clear that the said question does not arise in the facts and circumstances of the case. We are guided by the existence of the Arbitration Clause and the decision of this Court in SBI General Insurance Co. Ltd. vs. Krish Spinning 2024 SCC OnLine SC 1754 which discussed the scope of referral court's interference when a valid arbitration clause exists. 3. A brief conspectus of the facts is as follows. The appellant is a statutory body under the Warehousing Corporations Act, 1962, and is under the administrative control of the Ministry of Consumer Affairs, Government of India. As it was providing warehou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the stage at which it was left by his predecessors. The Arbitrator shall give a speaking award. The venue of Arbitration shall be at such place as may be fixed by the Arbitrator at his sole discretion. The cost of arbitration shall be borne by the parties as per the decision of the Arbitrator. The Arbitrator shall give separate award respect of each dispute or difference referred him, In to Subject as aforesaid, the Arbitration & Conciliation Act, 1996 shall apply to the Arbitration proceedings under this clause." 10. The application under Section 11 specifically speaks about the dispute that has arisen under the agreement dated 26.09.2012. Broadly, they relate to the right of renewal of the contract and also the legality and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.216-00 per square meter per month. 13. The second area of dispute is with regard to extension of the agreement for dedicated warehousing. As per Clause No 1 the period of dedicated warehousing was for three years with effect from 12.09.2012, but both the parties had the option of renewing the agreement for a further period as mutually agreed upon on expiry of the term of the agreement. It is on these two issues that notice of arbitration was given to the Managing Director of the Corporation by the petitioner on 23.09.2015. As per the postal tracking (page32 of the paper book), the same was delivered on 26.09.2015. In any case respondent has not disputed receipt of the notice. According to the respondent, it is not an arbitral disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The original lease as it were, validly subsisted till 11.09.2015 and the dispute between the parties related to the period commencing from 12.09.2012 to 11.09.2015, 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. 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'rule' under Section 16. The prima facie view on existence of the arbitration agreement taken by the referral court does not bind either the arbitral tribunal or the court enforcing the arbitral award. [...] 114. In view of the observations made by this Court in In Re : Interplay (supra), it is clear that the scope of enquiry at the stage of appointment of arbitrator is limited to the scrutiny of prima facie existence of the arbitration agreement, and nothing else.[...]" ( emphasis supplied ) 15. For the reasons stated above, we have no hesitation in rejecting the petition and we further hold that the appellant must bear the costs for this unnecessary litigation which we quantify at Rs. 50,000/-. 16. As the arbitration proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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