EASTERN RAILWAY Vs. LAFARGE INDIA PVT. LTD.
LAWS(CAL)-2017-1-2
HIGH COURT OF CALCUTTA
Decided on January 04,2017

EASTERN RAILWAY Appellant
VERSUS
Lafarge India Pvt. Ltd. Respondents

JUDGEMENT

- (1.) In view of the good grounds shown, the delay in preferring the appeal is condoned.
(2.) The appeal is directed against an order dated July 27, 2015 passed on a petition under Section 9 of the Arbitration and Conciliation Act, 1996. The respondent is a tenant under the railways; or, at any rate, a lessee. The respondent entered into possession of the railway premises pursuant to an agreement of May 24, 1999.
(3.) There is no dispute that clause 4 of the relevant agreement empowers the railways to enhance the rent without notice to the petitioner. The railways enhanced such rent and claimed a sum in excess of Rs.1.21 crore from the respondent. By the order impugned, it was observed, inter alia, as follows:- "According to the petitioner, this rent hike has been made wrongfully by the railways. This dispute between the parties is to be resolved thorough arbitration, since arbitral proceedings have already been started under Section 21 of the Arbitration and Conciliation Act, 1996. But in the meantime, according to the petitioner, the railways are trying to dispossess them of the said property. I think this course of action is not permitted once arbitration proceeding has started. The railways should make an effort to expedite the same and get an award in their favour before evicting the petitioner. This section 9 application is for protection against eviction." ;


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