Jayant Nath, J. - (1.)This petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 seeking to impugn the Award dated 15.02.2017 passed by the learned Arbitrator.
(2.)The brief facts of the case are that the petitioner is said to be a well known entrepreneur in the business of making and selling cosmetics and is the proprietor of Shahnaz Green Herbal Door. She was a tenant of shop No. 7, Khan Market, New Delhi which had been taken on rent by a registered lease deed dated December 29, 2005. She was running a salon, namely, Shahnaz Hussain Herbal Door in the said suit property. After closing the said salon, the petitioner was desirous of starting a restaurant in the said suit property. All fixtures relating to the salon were dismantled and investments were made to upgrade the decor of the shop. The petitioner subsequently entered into a First Management Contract dated 18.05.2010 with the respondent. The respondent was appointed to run a health cafe/restaurant by the name and style Cafe Watermelon with the possession of the said property resting with the petitioner. According to First Management Contract the petitioner was to provide capital expenditure with respect to complete interiors, furniture, fixtures and flooring besides providing for an electric generator set. Running cost and the electricity charges were to be borne by both the parties in a stated ratio. The petitioner was required to procure health license for operating cafe/restaurant. As per the said contract the petitioner was entitled to minimum guarantee commission of Rs. 2,50,0000/- each month or 25% of the total receipts whichever would be higher.
(3.)It is the case of the petitioner that she invested a sum of Rs. 13,75,679/- for setting up the restaurant. The restaurant was inaugurated on 20.09.2010. It is the further contention of the petitioner that on account of the reputation of the petitioner, the cafe generated lot of revenue. The Cafe was doing well as it was serving hookah which unfortunately was discontinued due to a ban by the Government of NCT of Delhi in 2012. It is further stated by the petitioner that the respondent breached the terms of the contract and made changes in the permanent structure. Such changes were not contemplated by the First Management Contract as the respondents were only required to maintain the said property as stipulated under clause 2.6 of the contract. It is also stated that in the interregnum the sales and revenues of the restaurant dropped, due to which the respondents approached the petitioner to expand the business to the first floor of the property. Hence, it is in this background that the Second Management Agreement dated 28.09.2011 (hereinafter referred to as "the Second Management Contract") was executed between the parties. As per the Second Management Contract, the business was expanded to the first floor of the property. As per the second agreement the petitioner was entitled to minimum guarantee commission of Rs. 3 lacs for the first floor and second floor or 25% of the gross income whichever is higher.