- (1.) The arbitral award has been challenged primarily on it being hypertechnical on rules of evidence without the arbitrator endeavouring a more substantive adjudication. This, according to the petitioner, is opposed to public policy as the technical rules of evidence do not apply to arbitration. The respondent came to be in possession of a property pertaining to a tenancy agreement executed between the parties on November 12, 2009. On January 29, 2010 a further agreement was executed to cancel the earlier tenancy agreement and for the respondent to vacate the premises and hand over possession to the petitioner. The most important clause of the agreement of January 29, 2010 provided that the petitioner would pay a sum of Rs. 95 lakh to the respondent upon the execution of the agreement and the petitioner would pay a further sum of Rs. 95 lakh to the respondent within 90 days of the date of the agreement "but simultaneously with (the respondent) vacating and handing over peaceful vacant possession of the premises to (the petitioner)." In the event the possession was delivered by the respondent later than as contemplated under the agreement, the respondent had to pay liquidated damages of Rs. 25,000/- per day. Similarly, the petitioner was liable to pay the balance sum of Rs. 95,000/- with interest at the rate of 18% per annum if the payment was not tendered within seven days of the respondent's notice indicating its readiness to vacate the premises.
(2.) It is not in dispute that the respondent vacated the premises sometime in July, 2010 by making over the keys to the premises to the petitioner's security guards engaged at the premises. The petitioner, however, did not make payment of the balance sum of Rs. 95,000/- on the ground that the petitioner was entitled to adjust the damages of Rs. 25,000/- per day for the period of delay and further on the ground that substantial damage had been caused to the premises by the respondent during the short occupation thereof.
(3.) Clause 5 of the agreement required the respondent to make over peaceful vacant possession of the premises to the petitioner "in its original order and condition, normal wear and tear excepted, within the period of 90 days as aforesaid...";