Arbitration – Expiry of Lease Deed
Lease – deed stood terminated on 31.1.2019 due to efflux of time and on the basis of defendant’s oral request, the plaintiff agreed to allow him to occupy the let out portion of the suit property on payment of revised monthly rent and even requested to execute fresh lease deed but he did not come forth.
The plaintiff filed the civil suit for possession, recovery of arrears of rent, damages/ mesne profits with interest.
The defendant filed Section 8 AA application to refer the dispute by arbitration since the Lease Agreement provided for such clause. According to the defendant, since the lease was extended twice verbally the agreement also stood extended and the plaintiff ought to have taken steps for appointment of arbitrator.
The trial Court rejected the application on the ground that there was no subsisting and written arbitration agreement between the parties.
HELD that Clause 1(a) of the Lease Agreement provided that the lease can be extended for next three years on signing a new lease deed for the extended period of three years. Thus, the parties had knowingly and consciously agreed that the extension of lease was subject to signing new lease deed only. Therefore, since the defendant did not come forward and no fresh lease deed in writing was executed, the verbal arrangement was regarding extension has no substance.
Judgment dated 9.7.2024 of the High Court of Delhi in FAO 200/20024 & CAV 286/2024 & CM APPL. 36461 – 36462 / 2024 of Mukesh Khurana Vs. Rahul Chaudhary
