M/S National Electric Supply And Trading Corporation PVT LTD vs. Chintpurni Overseas Private Limited
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The petitioner, M/s National Electric Supply and Trading Corporation Pvt Ltd, is the owner and lessor of premises in Wazirpur Industrial Area, Delhi, leased to the respondent, Chintpurni Overseas Private Limited, for a banquet hall. The petitioner claims the respondent is in arrears of rent amounting to over Rs. 7.66 crores as of September 22, 2025, based on a lease deed dated May 1, 2018. The respondent disputes the quantum of arrears, stating they are only from April 2025 onwards and claims TDS up to September 2025 has been deposited, which the petitioner disputes. It is admitted that GST has not been paid, and MCD dues for the banquet hall are also outstanding. Both parties agreed to appoint an arbitrator to resolve their disputes, as per the arbitration clause in the lease deed.
Held
The Court held that a valid arbitration clause exists between the parties, necessitating the appointment of an arbitrator to adjudicate the disputes. The Court found that the lease deed contained a clear arbitration clause, and the existence of disputes regarding rent arrears, GST, and MCD dues warranted referral to the arbitral mechanism. Consequently, the petition was allowed. Mr. Justice V. K. Jain (Retd., Delhi High Court) was appointed as the Sole Arbitrator to adjudicate all disputes, including arbitrability of claims, preliminary objections, and the merits of the claims and counter-claims. The arbitration is to be conducted under the rules of the Delhi International Arbitration Centre (DIAC). The respondent assured the Court that they would pay Rs. 85 lakhs along with GST within 10 weeks and clear the balance rental arrears, including GST, by January 31, 2026, while continuing to pay monthly lease rentals from October 2025. All rights and contentions of the parties were left open for the Arbitrator's adjudication.
Key Issues
1. Whether a valid arbitration clause exists between the parties, as per the lease deed dated 01.05.2018, to refer the disputes to arbitration? - Petitioner's contention: A valid arbitration clause exists, and the disputes concerning outstanding rent, GST, and MCD dues should be referred to arbitration. - Respondent's contention: Agreed that an arbitrator should be appointed to adjudicate the disputes. 2. What directions should be issued for the resolution of the disputes, including the payment of outstanding dues and GST? - Petitioner's contention: Sought directions against the respondent from using the premises and to pay outstanding dues. - Respondent's contention: Disputed the quantum of arrears and assured payment of a portion of the dues along with GST within a specified period, and the balance by January 31, 2026.
Sections Cited
Section 9, Section 12
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R % 22.09.2025
This is a petition filed under section 9 of the Arbitration and Conciliation Act, 1996 seeking directions against the respondent from using premises No. B-72/5, Block B, Wazirpur Industrial Area, Delhi-110088 and pay the outstanding dues of the petitioner.
The brief facts of the case are that the petitioner is the owner and lessor of property bearing No. B-72/5, Block B, Wazirpur Industrial Area, Delhi-110088. The respondent had taken the said premises on lease for running a banquet hall.
Learned counsel for the petitioner, states that the respondent is in arrears of rent arising out of lease deed dated 01.05.2018 and as of today, a sum of more than Rs. 7.66 crores is due and payable.
Mr. Tehlan, learned counsel for the respondent, disputes the said amount and states that no doubt the respondent is in arrears but the same is only from April 2025 till today. He further states that the TDS up to This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2025 at 11:49:16
September 2025 has already been deposited (the same is disputed by the learned counsel for the petitioner)
Admittedly, the GST has not been paid. Additionally, the MCD dues for banquet hall have also not been paid.
Both the parties agree that an Arbitrator be appointed for adjudication of disputes in view of the arbitration clause of the registered lease deed which reads as under: “ARBITRATION: Every dispute, difference, or question which may at any time arise between the parties hereto or any person claiming under them, touching or arising out of or in respect of this agreement (deed) or the subject matter thereof shall be referred to the arbitrator if, the said arbitrator shall be unable or unwilling to act. to another arbitrator to be agreed upon between the parties or failing agreement to be appointed by the Court and the decision of the arbitrator (or such arbitrators, or umpire as the case may be) shall be final and binding on the parties. The provisions of Arbitration and Conciliation Act, 1996 or any modification thereto shall apply to such proceedings. JURI ICTION: All matters concerning this Lease Deed shall be subject to the juri iction of The Courts of Delhi/ New Delhi only and shall be governed and construed in accordance with the law of India.”
I am satisfied that a valid arbitration clause exists and there are disputes between the parties that need to be settled through the arbitral mechanism.
For the said reasons, the petition is allowed and the following directions are issued: i) Mr. Justice V. K. Jain (Retd., Delhi High Court) (Mob. No. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2025 at 11:49:16
9650116555) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties. ii) The arbitration will be held under the aegis and rules of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (hereinafter, referred to as the ‘DIAC’). iii) The remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018. iv) The learned Arbitrator is requested to furnish a declaration in terms of section 12 of the Act prior to entering into the reference. v) It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claim, any other preliminary objection, as well as claims/counter-claims and merits of the dispute of either of the parties, are left open for adjudication by the learned Arbitrator. vi) The petitioner shall approach the learned Arbitrator within two weeks from today.
Mr. Tehlan, learned counsel for the respondent, assures the Court that the respondent shall pay Rs. 85 lakhs along with GST within 10 weeks from today and the arrears of the balance rental (including GST) shall be cleared on or before 31.01.2026. Additionally, the respondent shall continue to pay the monthly lease rental w.e.f. October, 2025 to the petitioner.
Binding the respondent to the same, the petition is disposed of. JASMEET SINGH, J SEPTEMBER 22, 2025/DM This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2025 at 11:49:16
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.