G & S Sarovar Park Plaza Hospitality Pvt Ltd v. Poorva Sanskritik Kendra Society

1. The learned counsels for the parties are agreed that the captioned petitions and the pending applications can be disposed of in the following terms (i). that this court appoints an arbitrator and the arbitration proceedings be governed by the fee schedule and the rules of the Delhi International Arbitration Centre (DIAC); (ii). the petitioner shall pay to Poorva Sanskritik Kendra Society (in short Societ}'), a sum of Rs.46 Lakhs, which includes Rs.20 Lakhs towards bridge loan extended by the society to the petitioner. This sum will be paid by the petitioner to the society within tliree (3) weeks from today; (iii). the petitioner will deposit a sum of Rs.81 Laldis in this court, within the same time frame, which will be invested in an interest bearing fixed deposit, with a nationalised bank; (iv). the petitioner will continue to pay to the societ)' an amount equivalent to 14% of the gross operating receipts, as its share of the revenue, commencing from the month of October, 2013, as indicated ARB.P. 295/2013 & connected matters in the agreement dated 17.12.2004. This payment and its receipt will be without prejudice to the rights and contentions ofthe parties; (v). the societ}' in turn shall discharge its obligations towards payment of subscription fee of the members and maintenance charges, as indicated in the aforementioned agreement; and (vi). The petitioner will have libeity to move an application for cancellation of the bank drafts, which have been received in the meanvk'hile by the society from the concerned banlc against the banlc guarantees in issue, after it has done the needful in terms of clauses

(ii) and (iii) above.

2. In view of the above, Ms. Justice Manju Goel, a former Judge of this court (Mobile No. 9818000330) is appointed as an arbitrator in the matter. The parties and their counsels shall appear before the DIAC on 25.10.2013 at 3.00 p.m.

3. Needless to say, the parties will be at liberty to prefer their claims and counter claims, if any, before the learned Arbitrator, who shall decide the same in accordance with the law after giving due opportunity to both parties. The society shall be free to move an application under Section 17 of the Ai'bitration and Conciliation Act, 1996 before the learned Arbitrator for release of the sum of Rs.81 Lakhs deposited by the petitioner. Similarly, the petitioner will also be at liberty to move an appropriate application in that behalf.

4. In view of the fact that, I have not been called upon to deal with the specific prayers made in the captioned petitions, except one relating to the banlc guarantees in issue, the parties will be free to move appropriate applications before the learned arbitrator to press those prayers, if found necessary.

5. With the aforesaid observations in place, the captioned petitions and the pending applications are disposed of RAJIV SHAKDHER, J OCTOBER 03, 2013