OLYMPIA INDUSTRIES LTD. Vs. SUMILON INDUSTRIES LTD.

JUDGEMENT

(1.) This is an application for appointment of a Sole Arbitrator pursuant to an arbitration clause contained in an agreement described as an "Lease Agreement" dtd. 1/2/2013. It is the applicants case that under the said writing dtd. 1/2/2013 the applicant had granted to the respondent the right of conducting a factory premises situated at Surat wherein certain coning and dyeing facilities were being carried out. The agreement is stated to be an operating lease and not one of lease of land as understood in the customary sense.

(2.) It is alleged that the respondent was liable to pay a stipulated amount every month in advance with escalation over time. However on account of delays caused by the respondent in paying the licence fees the applicant has claims against the respondent. There is no dispute about the fact that the applicant has since recovered possession of the premises inasmuch as the operating lease no longer subsists because by a letter dated 29 th October, 2016 the operating lease was revoked. Several breaches are alleged to have been committed by the respondent who has denied these allegations by a response dtd. 5/12/2016.

(3.) On 8/2/2017 the applicants Advocate invoked the arbitration clause. Allegations were traded between the parties and respondents has denied all of the applicants contentions vide its response dated 2 nd March, 2017. Disputes and difference having arisen and having invoked the arbitration clause the applicant now seeks the appointment of a sole Arbitrator. Mr. Chavda for the applicant therefore submits that a Sole Arbitrator may be appointed to adjudicate disputes between the parties.