Single judge of the Bombay High Court dismissed a petition to set aside an arbitral award dated 10.10.2002 regarding licence fee escalation in a hotel agreement, holding it unnecessary to consider other objections.
The petition for setting aside the arbitral award is dismissed.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
ARBITRATION PETITION NO.356 OF 2004
Competent Hotel Pvt. Ltd. ..Petitioner.
Vs.
Airports Authority of India
& Ors. ..Respondents.
Mr.Anil C. Singh i/b.Mr.Dhanesh R. Shah, Advocate
for the Petitioner.
Ms.Lopa Munim i/b.Mr.Rajesh Kothari, Advocate for
the Respondents.
CORAM : S.J. VAZIFDAR, J.
DATED : 4TH OCTOBER, 2004
P.C. :
This is a Petition for setting aside an award
dated 10.10.2002.
2. Under the agreement entered into between the
parties dated 29.1.1998 the licence was for a period
of 10 years effective from 1.11.1997. Under clause
2(B) beyond one year period of the licence the
amount of licence fees was to be escalated and
compounded by 10% every year.
3. The learned arbitrators therefore correctly
interpreted the clause and held that the escalation
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would commence from 1.11.1998.
4. Mr.Singh submitted that, in fact, what is stated
in the agreement is wrong and that pursuant to prior
negotiations the escalation ought to commence only
from 1.2.1999. This is contrary to the terms of the
agreement itself. Moreover, the learned arbitrators
held that they were unable to accept the
Petitioner’s contentions for the reason that the
Petitioner had failed to produce the necessary
documents. Even assuming that the necessary
documents supported the Petitioner’s case, it would
make no difference, the Petitioners having failed to
have the same produced.
5. In view of the above, it is not necessary for me
to consider the objection regarding limitation
raised by the learned counsel appearing on behalf of
the Respondent.
6. In the circumstances, the Petition is dismissed.
Parties to act on an ordinary copy of this order
duly authenticated by the Chamber Registrar/Court
Stenographer.
1 issue framed by the court
Whether the petition under Section 34 of the Arbitration Act to set aside the arbitral award should be allowed or dismissed.
Competent Hotel Pvt. Ltd.
Airports Authority of India
S.J. VAZIFDAR
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court