SMS TEA ESTATES PVT LTD Vs. CHANDMARI TEA CO PVT LTD

JUDGEMENT

(1.) Leave granted. Heard.

(2.) The Appellant filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 ('Act' for short) for appointment of an arbitrator. The averments made in the said application in brief were as under:

(3.) The Respondents opposed the said application. The Respondents contended that the unregistered lease deed dated 21.12.2006 for thirty years was invalid, unenforceable and not binding upon the parties, having regard to Section 107 of Transfer of Property Act 1882 ('TP Act' for short) and Section 17 and Section 49 of the Registration Act, 1908 ('Registration Act' for short); that the said lease deed was also not duly stamped and was therefore invalid, unenforceable and not binding, having regard to Section 35 of Indian Stamp Act, 1899; that Clause 35 providing for arbitration, being part of the said lease deed, was also invalid and unenforceable. The Respondent denied that they had agreed to sell the two tea estates to the Respondent for a consideration of Rupees four crores. The Appellant also denied that the Respondent had invested any amount in the tea estates. It contended that as the lease deed itself was invalid, the Appellant could not claim appointment of an arbitrator under the arbitration agreement forming part of the said deed.