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2013 DIGILAW 745 (DEL)

Sagar Ratna Restaurants Private Limited v. Tarseem Kumar

2013-04-17

M.L.MEHTA

body2013
M.L. Mehta, J. (Oral) 1. This is a petition filed under Section 9 of the Arbitration and Conciliation Act, 1996. The admitted facts of the case are that vide an agreement dated 01.05.2005 executed between the respondents and M/s. Sagar Ratna Hotels P. Ltd. (M/s. SRHP), the commercial premises being premises No. 33, 35 & 36, Pocket C-9, Sector 7, Rohini, Delhi situated on the ground & first floors, was agreed to be provided by the respondents to M/s. SRHP for running its outlet of restaurant on the terms and conditions as stipulated therein. One of the terms being that the duration of the agreement was for a period of ten years from the date of opening the restaurant, which could be increased further for such a period on the terms and conditions, as may be mutually agreed between the parties. Another important term as stipulated in Clause 19 of the said agreement is that both the parties could terminate this agreement by serving three months notice in writing in the event of there being violation of any of the terms and conditions thereof. In the case of termination, M/s. SRHP was to hand over the possession of the premises along with the fixtures etc. to the respondents. Further, one of the important term as stipulated in Clause 20 is that in the event of expiry of the agreement, the respondents could not use the name "SAGAR RATNA" or any other name identical to it, and could not continue the restaurant business for a further period of seven years. 2. After the agreement dated 01.05.2005, another supplementary agreement dated 17.06.2011 was executed between the respondents, the petitioner herein and SRHP. By virtue of this agreement, the present petitioner acquired all the rights of SRHP in respect of the restaurant business that was being carried by SRHP in the suit premises. All the terms and conditions as stipulated in agreement of 01.05.2005 executed between the respondents and SRHP were to be applicable to the petitioner herein. In other words, the petitioner stepped into the shoes of SRHP qua the suit premises and the restaurant business being carried therein on all the terms and conditions of the agreement dated 01.05.2005. 3. The business was being carried by the petitioner for quite some time. In other words, the petitioner stepped into the shoes of SRHP qua the suit premises and the restaurant business being carried therein on all the terms and conditions of the agreement dated 01.05.2005. 3. The business was being carried by the petitioner for quite some time. The grievance of the petitioner is that the respondents have unauthorizedly dispossessed it in connivance with some of its staff officials on 24.09.2012. It is alleged that this is in gross violation of the terms of the agreement of 01.05.2005 as also of the supplementary agreement of 17.06.2011. It is pointed out by the learned counsel for the plaintiff that a notice of termination of the agreement was sent by the respondents on 23.09.2012 by speed post. A look at that notice would show that certain differences and disputes were sought to be raised by the respondents. The petitioner was also called upon for rendition and settlement of account, and was asked to give the possession of the premises and fixtures immediately. The said notice is seen to have been sent by the speed post on 23.09.2012 at about 10 p.m. It is submitted by the learned counsel that this notice was received only on 25.09.2012, but, in the meanwhile, the petitioner was dispossessed from the premises, and for which, the police complaints were made on 24.09.2012 itself. It is submitted by the counsel for the plaintiff that as per Clause 19 of the agreement dated 01.05.2005, the termination of the same can only be done by either party by serving three months notice in writing in the event of any violation of the term/condition thereof, and that there was no such notice ever given by the respondents. The said notice of 23.09.2012 is alleged to be not in consonance with the Clause 19 of the agreement. Further, it is submitted that in any case, the respondents could not carry on the business of restaurant for seven years as per Clause 20. 4. On the other hand, learned counsel appearing for the respondents submits that the persons who were named in the petition were either the employees or the outsiders and they being not the party to the agreement, the arbitration could not be invoked in the present form. 4. On the other hand, learned counsel appearing for the respondents submits that the persons who were named in the petition were either the employees or the outsiders and they being not the party to the agreement, the arbitration could not be invoked in the present form. It is also submitted that the possession of the suit premises was given by the petitioner to the respondents of its own as mutually agreed on 24.09.2012 through Mr. K.S. Manjunath, the then employee of the petitioner company. This is all vehemently denied by the learned counsel for the petitioner. 5. With regard to the plea that is sought to be taken by the respondent that arbitration could not be invoked as some of the persons named in the petition being either the employees of the petitioner or outsiders, were not signatory to the agreement, is apparently untenable. The petitioner is not seeking arbitration proceedings against those persons. The grievance of the petitioner is to the violation of the terms and conditions of the agreement dated 01.05.2005 and its dispossession from the suit premises. From the averments as set out in the petition and the reply of the respondents thereto, apparently, there are certain differences and disputes which have arisen between the parties. It is admitted by the learned counsel for the respondents that if it was so, then, as per Clause 21 thereof, the matter was to be referred to the arbitration. Since the respondents are admittedly carrying on the business of restaurant in the same premises under the name of "Shree Rathnam" since from the time of taking the possession on 24.09.2012, it is a fit case for passing of interim order under Section 9 of the Arbitration and Conciliation Act. 6. With the consent of the both the parties, the Receiver is to be appointed till such time, the disputes and differences between the parties are settled by the Arbitrator. Accordingly, Sh. J.P. Sharma, Addl. District & Sessions Judge (Retd.) is appointed as Receiver as regard to the affairs and conduct of the restaurant business by the respondents themselves or through M/s. Shree Rathnam in the premises i.e. 33, 35 & 36, Pocket C-9, Sector 7, Rohini, Delhi. Sh. J.P. Sharma would device his own means and methods for maintaining the details of the accounts of the business including the expenses and sales etc. Sh. J.P. Sharma would device his own means and methods for maintaining the details of the accounts of the business including the expenses and sales etc. He would be at liberty to control and regulate the business in a computerized manner, if not already done, and is also authorized to employ some suitable Manager of his own choice to look after the day to day business & affairs of the restaurant business. He will also be at liberty to open an account and operate the same for the purpose of conduct of the business. His remuneration is fixed at Rs. 50,000/- per month exclusive of other out of pocket expenses including conveyance etc. The learned counsel representing both the parties have requested for the appointment of Arbitrator in the present proceedings itself to avoid another litigation in this regard. With their consent, Sh. Dinesh Dayal, Addl. District & Sessions Judge (Retd.) is appointed as an Arbitrator. His remuneration would be Rs. 50,000/- per sitting. On being informed about the arbitration proceedings nearing conclusion, the Receiver shall submit his report with accounts to Arbitrator. The learned Arbitrator shall take into consideration the detailed report of Receiver while making an award. All these expenses of the Receiver and Arbitrator shall be borne by the parties equally. 7. Copy of the order be sent to Sh. J.P. Sharma and Sh. Dinesh Dayal, AD & SJ (Retd.) and also be given dasti to both the parties. The parties are advised to appear before Sh. J.P. Sharma (Receiver) on 22.04.2012 at 3.00 p.m. and before Sh. Dinesh Dayal on 23.04.2012 at 3.00 p.m. 8. Petition stands disposed of accordingly.