- (1.) THE question raised, as to the jurisdiction of this Court to receive the petition under section 11 (6) of the Arbitration and Conciliation Act, 1996, is a fallout of the present view that a request to a Chief Justice for a reference to arbitration involves the discharge of functions of judicial nature.
(2.) THE parties entered into an agreement on January 31, 2003 for the petitioner to run a bookstore at the respondent's hotel in Bangalore and for the parties to share profits from the bookstore business in addition to the respondent being entitled to a fixed monthly sum. It appears from the correspondence leading up to the respondent's final letter that the respondent was not satisfied with the accounts of the bookstore that it received from the petitioner, the insinuation being that the receipts were underplayed and the expenses overstated so that the payout to the respondent on account of its share of profits would be less. The respondent took the extreme step of demanding that the association be ended and in its letter of January 19, 2006, it required the petitioner to handover vacant possession of the shop in the following words: "we refer to the Agreement dated 31 January, 2003 entered into between us in respect of B4, 5, 6, 7 and 8 at the Leela Galleria, bangalore ('the Agreement' ). The lock-in period provided in clause 15 of the Agreement is expiring on 31st January, 2006, after which either party is entitled to terminate the Agreement by giving 45 days notice. Accordingly, we hereby give notice of 45 days commencing on 31 january, 2006 terminating the Agreement. The notice period expires on 17 March, 2006. Kindly arrange to handover vacant possession of the premises to us on 17 March, 2006 in terms of the Agreement. "
(3.) THE petitioner's response of March 10, 2006 is summarised in the penultimate paragraph thereof: "we are bonafide occupants of the aforesaid shops. At present we are paying compensation of Rs. 1 Lakh per month and are also liable to pay 50% of profit before interest, depreciation and tax arising out of business operation carried out from the aforesaid shops in terms of the said Agreement. We have not defaulted in payment of any amounts payable by us under the Aggreement and we have admittedly observed and performed all covenants and stipulations contained in the Agreement and are thus entitled to peaceful use of the aforesaid shops in terms inter alia of clauses 11 and 21 of the agreement. Our occupation is protected in terms of the said agreement and also otherwise and you should not interfere with our peaceful use and occupation of the said shops. The Agreement is initially for a period of 9 years from 1st February, 2003 in terms of clause 1 and your attempts to terminate the same before expiry of the aforesaid period of 9 years are illegal and uncalled for. ";