BHARAT SEWA SANSTHAN Vs. U P ELECTRONICS CORPORATION LIMITED

JUDGEMENT

(1.) BHARAT Sewa Sansthan has filed this appeal challenging the final judgment and order dated 14.09.2004 of the learned Single Judge of the High Court of Judicature at Allahabad, Lucknow Bench, in Writ Petition No. 3388/2004(MS) by which the order of the learned Additional District Judge (Special Judge, E.C. Act) Lucknow, dismissing the application filed by the U.P. Electronics Corporation Limited [hereinafter referred to as the respondent-Corporation] under Section 8 of the Arbitration and Conciliation Act, 1996, has been set aside with direction to the learned Additional District Judge to refer the matter to arbitration and both the parties are directed to appoint their Arbitrator as per the arbitration clause in the lease agreement.

(2.) BACKGROUND facts in a nutshell are as follows: 2.1 Bharat Sewa Sansthan [hereinafter referred to as the 'appellant-Sansthan] is a charitable society registered under the Societies Registration Act. The main object of the appellant-Sansthan is to work for the social, economic, educational and cultural upliftment of the people. The appellant-Sansthan is the sole and exclusive owner of multi- storeyed building known as "Chandra Bhanu Gupta Smarak Nav Chetna Kendra" located at No. 10, Ashok Marg in the city of Lucknow (U.P.). On 11.11.1980, the respondent-Corporation took for office accommodation an area measuring 14,925 square feet on the first floor of the multi-storeyed building of the appellant- Sansthan on monthly rent of Rs. 47,7607- @ Rs. 3.20p per square foot, which comprised (a) basic rent @ Rs. 2/- per square foot amounting to Rs. 29,850/- and (b) the balance amount of Rs. 17,910/- @ Rs. 1.20p per square foot towards the ancillary services provided for the said accommodation in the form of elevators (lifts), a designated area for parking of vehicles, lights for public and common passages and sewerages etc. under a lease granted by the appellant-Sansthan to the respondent-Corporation on 01.12.1980.

(3.) LEARNED Additional District Judge (Special Judge, E.C. Act), Lucknow, had rejected both the above-said applications. Being aggrieved, the respondent - Corporation has assailed the order of the Trial Court by way of Writ Petition before the High Court. The learned Single Judge of the High Court allowed the writ petition and held that the learned Trial Court has wrongly rejected the application under Section 8 of the Arbitration Act as the subject- matter of the suit is arbitral witn further direction to the learned Additional District Judge (Special Judge, E.C. Act), Lucknow, to refer the matter to arbitration and both the parties may appoint their Arbitrator as per the arbitration clause in the lease agreement.