- (1.) This petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, (hereinafter referred to as 'Arbitration Act of 1996' in short) praying for appointment of Sole Arbitrator to decide over the dispute which has arisen between the petitioner and respondents.
(2.) Brief facts of the case are as under : Petitioner is the absolute owner of the immovable property bearing No. 94, Industrial Suburb, 2nd Stage, Industrial Area. Yeshwanthpur, Bangalore-560 022, with construction thereon. Respondents 1 and 3 are the companies incorporated under the provisions of Companies Act, 1956. The petitioner and respondent No. 1 entered into a Lease Agreement as per Annexure 'B' dated 8th September 2008. Likewise, another agreement of lease was entered into between petitioner and respondent No. 3 as per Annexure- 'C' on the very day i.e. on 8th September 2008. Prior thereto, a Memorandum of Understanding was entered into between the petitioner and the 1st respondent as per Annexure 'A' on 6th August 2008. Consequently, the aforementioned property was leased in favour of respondents 1 and 3 as per the Lease Deeds vide Annexures-'B' and 'C'. It is the case of the petitioner that respondents 1 and 3 are affiliated companies and part of Jubiliant Organosys Group of Companies and the companies are under the same management. The Memorandum of Understanding as well as the Lease Deeds set out the terms and conditions agreed between the parties. In accordance with the Memorandum of Understanding, the petitioner was to provide additional facilities demanded by respondent No. 1 in the schedule property. According to the petitioner, he has agreed to all the demands made by respondent No. 1 and provided all the additional facilities even to the extent of making substantial changes and improvements to the schedule property to suit to the convenience of respondent No. 1 and its requirements, consequently has incurred additional expenditure of Rs. 1 crore for alterations carried out based on the representation/demand made by respondents No. 1. The parties have agreed that respondent No. 1 will continue in possession of the property as a lessee for a block period of fifteen years. However, the Lease Deeds reveal that the "lock-in-period" of lease would be for 36 months i.e. three years. Ultimately, the letters of termination of lease dated 8-12-2008 as per Annexures- 'D' and 'E' sent by respondent No. 1 and 3 are received by the petitioner. In view of the termination of lease agreements coupled with Clause 5 of the Lease Deeds, the petitioner called upon the respondents to make the payment of the rents for a period of 42 months (i.e., the period of Lock in and Notice period) totalling to a sum of Rs. 6,59,40,000/-, vide letter dated 17-12- 2008 as per Annexure 'F' to the writ petition. The respondents have sent reply on 12- 2-2009 as per Annexures-'G' and 'H', denying the prayer of the petitioner.
(3.) From the above, it is clear that the dispute has arisen between the parties and the same needs to be resolved. Clause 19 of both the Lease Deeds reveals that any dispute arising out of the Lease Deeds or any matters relating thereto, shall be referred to arbitration, which shall be decided in accordance with the Arbitration and Conciliation Act, 1996. Such arbitration shall be held in Bangalore and the Courts in Bangalore alone will have jurisdiction. By invoking the said clause, this petition is filed praying for appointment of sole Arbitrator to resolve the dispute.;