Arbitral Award for compensation of 3 months as against 17 months for remaining lock in period of lease
Respondent and the original lessor (petitioners are his legal heirs) had entered into Lease Deed dated 23.4.2016 for a period of five years to use premises at Grant Road, Mumbai.
The petitioners claimed that the respondent without permission of the Original Lessor carried out several internal and external alterations in the property, causing leakages and creating constant impediments in the work being carried out by the petitioners. However, the respondent denied the allegations and refused to pay 50% share of the repairs costs.
The respondent by the letter dated 12.4.2017 gave notice for termination of Lease Deed from 1.7.2017 since it was not safe to remain in possession of the property.
By the letter dated 22.6.2017 the petitioners denied the allegations and claim Rs.1,62,34,454 as compensation for remainder lock-in period of lease, Rs.69,14,304/- for property tax and Rs.25,92,716 for licence fees unilaterally deducted by the respondent.
The disputes between the respondent and the petitioners had given rise to the arbitral proceedings and appointment of Arbitrator by the order dated 25.1.2018.
By the impugned portion of the Arbitral Award dated 20.9.2019, compensation only for three months was granted as against entire lock-in period of 17 months of lease.
HELD that the doctrine of mitigation of loss applies, it was for the claimants to plead and prove and the claimants have failed to prove the same. Moreover, it is a finding of fact which cannot be interfered in exercise of powers under Section 34 of the Arbitration Act, 1996.
Judgment dated 26.9.2023 in Commercial Arbitration Petition No.502 of 2021 – Prema V. Shetty &
