M/S Gn Builders PVT LTD vs. M/S Balance Fitness Lounge
Original PDF →Facts
M/s GN Builders Pvt Ltd (Petitioner) filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996, seeking the appointment of an Arbitrator. The dispute arose from a lease deed dated 25.11.2022, with the Petitioner alleging breaches by M/s Balance Fitness Lounge (Respondent). These breaches include failure to pay rent, hand over possession, and clear penalties and electricity charges, leading to an alleged liability of Rs. 1,47,31,943/- plus 12% interest and applicable GST. The Petitioner had issued a notice dated 12.03.2025 for payment and conciliation, followed by a notice dated 08.04.2025 invoking the arbitration clause. The Respondent allegedly failed to comply with the lease terms.
Held
The Court held that disputes have indeed arisen between the parties concerning the lease deed dated 25.11.2022. The Petitioner had invoked the arbitration clause as per the lease agreement. With the consent of both parties, the Court exercised its power under Section 11 of the Arbitration and Conciliation Act, 1996, to appoint a sole Arbitrator. The Court appointed Ms. Radhika Bishwajit Dubey, Advocate, as the sole Arbitrator. The arbitration proceedings will be conducted under the aegis of the Delhi International Arbitration Centre (DIAC) and will be governed by its rules. The Arbitrator is entitled to fees as per DIAC's schedule and is required to file a disclosure under Section 12(2) of the Act. All rights and contentions of the parties regarding claims and counter-claims are kept open for the Arbitrator to decide on merits. The Court explicitly stated that its order does not express any opinion on the merits of the controversy.
Key Issues
1. Whether the Court has the power to appoint an Arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, given the disputes that have arisen between the parties pursuant to the lease deed dated 25.11.2022? Petitioner's Contention: The Petitioner argued that disputes have arisen due to the Respondent's alleged breaches of the lease deed, including non-payment of rent, failure to hand over possession, and outstanding penalties and electricity charges, amounting to a significant financial liability. The Petitioner had followed the conciliation and arbitration invocation procedures outlined in Clause 10.1 of the lease deed. Respondent's Contention: The judgment does not record any specific arguments made by the Respondent regarding the appointment of an Arbitrator. However, their presence and participation in the proceedings imply an acknowledgment of the dispute, even if not explicitly agreeing to the Petitioner's claims.
Sections Cited
Section 11, Section 12(2)
AI-generated summary — verify with the full judgment below
ARB.P. 1521/2025 $-42 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ARB.P. 1521/2025
Date of Decision: 17.10.2025
IN THE MATTER OF:
M/S GN BUILDERS PVT LTD
.....Petitioner
Through: Ms. Garima Anand, Advocate.
versus
M/S BALANCE FITNESS LOUNGE
.....Respondent Through: Ms. Megha Mukherjee with Mr. Ravi Sharma, Advocates.
HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV
JUDGEMENT
PURUSHAINDRA KUMAR KAURAV, J. (ORAL) The present petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (the Act), seeking appointment of an Arbitrator, to adjudicate upon the disputes that have arisen between the parties.
Admittedly, a dispute has arisen pursuant to lease deed dated 25.11.2022. It is stated that the respondent has committed breaches of the lease terms by failing to pay rent, hand over possession within the stipulated period, and clear penalties and electricity charges, resulting in an alleged liability of Rs. 1,47,31,943/- with 12% interest and applicable GST. Despite issuance of a notice dated 12.03.2025 demanding payment and treating it as ARB.P. 1521/2025 a conciliation notice, and a subsequent notice dated 08.04.2025 invoking the arbitration Clause 10.1 of the lease deed, the respondent failed to abide by the terms of the lease deed, as per the petitioner.
Clause 10.1 of the said lease deed is reproduced as under:-
“DISPUTE RESOLUTION:
1 In the event of any dispute difference or question arising out of this agreement or the commission of any breach of the terms thereof or in any manner whatsoever in connection with it, the aggrieved party shall send a 10 days notice to the other party for resolution of the disputs by conciliation of the same. If no conciliation takes place within period of 10 days the aggrieved partys hall invoke arbitration by appointing its arbitrator and requesting the other party to appoint its arbitrator within10 days of the receipt of the notice. The two arbitrator wiil appoint third arbitrator on the first date of entering into reference if the other party fails to appoint arbitrator within 10 days of the receipt of notice the arbitrator appointed by the aggrieved party shall enter into reference and proceed with the arbitration proceedings according to the Arbitration & conciliation Act 1996 as amended from time.to time the arbitration proceedings shall be subject to the juri iction of courts at Delhi."
With the consent of the parties and in view of the fact that disputes have arisen between the parties, this Court appoints Ms. Radhika Bishwajit Dubey, Advocate (Mobile No. +91 9810982927, e-mail id: radhika.arora21@gmail.com ) as the sole Arbitrator.
The arbitration would take place under the aegis of the Delhi International Arbitration Centre (DIAC) and would abide by its rules and regulations. The learned Arbitrator shall be entitled to fees as per the ARB.P. 1521/2025 Schedule of Fees maintained by the DIAC.
The learned arbitrator is also requested to file the requisite disclosure under Section 12 (2) of the Act within a week of entering on reference.
All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the Sole Arbitrator on their merits, in accordance with law.
Needless to say, nothing in this order shall be construed as an expression of opinion of this Court on the merits of the controversy between the parties. Let a copy of the said order be sent to the Sole Arbitrator through electronic mode as well.
Accordingly, the instant petition stands disposed of.
PURUSHAINDRA KUMAR KAURAV, J OCTOBER 17, 2025 tr/mj
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.