M/S Classic Motors Pvt Ltd v. M/S Goyal M.G Gases Pvt Ltd

NAVIN CHAWLA, J MARCH 20, 2018/nk

Page 1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + O.M.P. 143/2015 AND O.M.P. 301/2015 & IA 9926/2015 Reserved on: 27th February,2018 Date of decision: 20th March, 2018 O.M.P 143/2015 M/S CLASSIC MOTORS PVT LTD ..... Petitioner Through Mr. Tahir Ashraf Siddiqui and Mr. B. Anand, Advs. versus M/S GOYAL M.G GASES PVT LTD ..... Respondent Through Mr. Harish Malhotra, Sr. Adv. with Mr. Simran Mehta, Adv. O.M.P 301/2015 & IA 9926/2015 M/S GOYAL M.G GASES PVT LTD ..... Petitioner Through Mr. Tahir Ashraf Siddiqui and Mr. B. Anand, Advs. versus M/S CLASSIC MOTORS PVT LTD ..... Respondent Through Mr. Harish Malhotra, Sr. Adv. with Mr. Simran Mehta, Adv. CORAM: HON'BLE MR. JUSTICE NAVIN CHAWLA 1. These petitions under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') have been Page 2 filed by the parties challenging the Arbitral Award dated 25th September, 2014 read with the correction of the same vide order dated 22nd November, 2014 published by the Sole Arbitrator (hereinafter collectively referred to as the 'Impugned Award'). As both parties have challenged the Impugned Award, they are being disposed of by way of this common order. M/s Classic Motors shall be referred to as 'Petitioner', while M/s Goyal M.G Gases Pvt. Ltd. shall be referred to as the 'Respondent'. 2. The relationship between the parties had commenced with the signing of the Leave and License Agreement dated 18th September, 2006, which is also the bone of contention and dispute between the two parties. The Agreement was with respect to First Floor at A-38, Mohan co- operative Industrial Estate, Main Mathura Road, New Delhi-11004, admeasuring covered area of 10,625 sq. ft. and service area of 600 sq. ft. (hereinafter referred to as the 'Premises'). 3. Some of the terms of the said agreement relevant for the purpose of the present adjudication, are reproduced hereinbelow: "NOW THIS AGREEMENT WITNESSETH AS UNDER: 1. That the Licensor in consideration for a monthly license fee of Rs. 6,73,500/- (Rupees Six Lacs Seventy three thousand five hundred only) herein agreed and payable by the Licensee, in advance for every month has agreed to give to the Licensee the demised premises for its office use. The Leave and License Agreement shall be in initially for a period of 11 months commencing from 25-9-2006. Page 3 2. That the Licensee has the option to renew the Leave and License Agreement for two more terms of 11 months each without any increase license fee i.e. uptill 25-6-2009 by giving two months notice in advance to the Licensor before the expiry of the agreement. The Leave and License Agreement can be extended after 33 months from 25-9-2006 as mutually discussed and agreed by the Licensor and Licensee with an increase of 25% license fee last paid i.e. w.e.f. 25-6-2009 the license fee will be Rs. 8,41,875/- per month from 25-6-2009 and a fresh Leave and License Agreement will be executed by the parties in that regard. It is also agreed that the Agreement can be extended for another three years on an increase of license fee of 25% of the last rent paid for every three years after 25-6-2009. xxxxxxxxx 8. (c) The Licensor represents to the Licensee that it is the legal owner and landlord of the demised premises and is duly authorized as an owner of the demised premises to give on leave, rent or license for running office and such usage is permissible under the applicable laws." 4. Upon the completion of the initial period of eleven months, the respondent sought extension of the agreement vide its communication dated 16th May, 2007, which was acceded to by the petitioner, though no formal agreement in this regard was executed. 5. The respondent by way of its letter dated 29th December, 2007 raised certain disputes with respect to the seepage of water from the roof top and sought to deduct a sum of Rs. 10,00,000/- from the rent payable by it to the petitioner towards loss and damage suffered by it. This was Page 4 not agreed to by t