ASCOT HOTELS AND RESORTS PVT LTD & ANR Vs. CONNAUGHT PLAZA RESTAURANTS PVT LTD

JUDGEMENT

(1.) This appeal has been filed by the appellant under Section 37(2) of the Arbitration & Conciliation Act, 1996 challenging the order dated 12th April, 2017 passed by the Sole Arbitrator in arbitration proceedings No. DAC/1476/12-16, Connaught Plaza Restaurant vs. Ascot Hotels & Resorts Ltd. & Anr. The Arbitrator vide his impugned order has directed maintenance of status quo with respect to the 'license area' that is an area of approximately 2500 sq.ft, covered area along with terrace in the building constructed on Khasra No.656/1 and Khasra No.621 in Mauja Gahi, Tehsil Kasauli, District Solan, Himachal Pradesh along with storage area of 450 sq.ft in the basement of the said property.

(2.) The disputes between the parties arise out of the License Agreement dated 19th December, 2006 by which the license area along with the storage area in the basement was given on a license basis by the appellant to the respondent for running of a restaurant in the name of McDonald's Family Restaurants. The license was for a period of 20 years with an option to renew the same for a further term of 5 years. Some of the terms and conditions of the License Agreement that are relevant for the purposes of present appeal are reproduced herein under:-

(3.) As certain disputes arose between the parties in relation to the Common Area Maintenance (hereinafter referred to as 'CAM') charges, the respondent filed an application under Section 9 of the Act before the Additional District Judge, Patiala being Arbitration No.154/2016. The Additional District Judge vide ad interim order dated 20.05.2016 directed the appellant to immediately restore the water and electricity supply to the respondent, subject to the respondent continuing to pay to the appellant the usage charges for electricity and water and such other dues as per the terms already agreed. The application was finally disposed of by order dated 7th October, 2016, extending the interim protection by a further period of two weeks, while giving liberty to the respondent to approach the Delhi International Arbitration Centre (DIAC) for seeking appointment of a Sole Arbitrator in terms of the arbitration agreement between the parties.