Delhi High Court Orders Sealing of Disputed Hotel Premises Amid Arbitration Proceedings

Local Commissioner Appointed to Secure and Preserve Property Pending Arbitration Between Unison Hotels Pvt. Ltd. and Night Beat Hospitality Pvt. Ltd.

In a significant development, the Delhi High Court has intervened in a property dispute between Unison Hotels Pvt. Ltd. and Night Beat Hospitality Pvt. Ltd., directing the appointment of a Local Commissioner to take possession of the disputed premises. The premises, known as Playboy Restro Bar/Lounge at The Grand Hotel, Vasant Kunj, New Delhi, have been sealed pending arbitration proceedings to resolve the conflict between the two parties.

The dispute centers around a license agreement initiated on June 2, 2022, which subsequently faced termination notices. Unison Hotels Pvt. Ltd., the licensor, sought to restrain Night Beat Hospitality Pvt. Ltd., the licensee, from accessing the premises and demanded the removal of all belongings. Conversely, Night Beat Hospitality Pvt. Ltd. contested the termination notices and requested the restoration of essential utilities to continue operations.

Presiding over the case, Justice Purushaindra Kumar Kaurav responded to the urgency of the situation by appointing Ms. Ashu Ankur Goyal, Deputy Registrar of the Delhi High Court, as the Local Commissioner. The Commissioner was tasked with overseeing the possession of the premises, ensuring neutrality, and preserving the property condition through video and photographic documentation. The premises were sealed, and keys were deposited with the Registrar General.

Further, the Court appointed Mr. Justice Rajiv Shakdher, Former Chief Justice of the High Court of Himachal Pradesh, as the Sole Arbitrator to adjudicate the disputes arising from the license agreement. Proceedings will be conducted under the aegis of the Delhi International Arbitration Centre (DIAC), adhering to its regulations.

This interim arrangement aims to maintain the status quo until the Sole Arbitrator issues further orders. Both parties have been urged to expedite the arbitration process, given the urgency and nature of the grievances involved.

The decision underscores the Court's commitment to ensuring fairness and neutrality in arbitration-related disputes, especially concerning possession and essential amenities of licensed premises.

Bottom Line:

Arbitration - Dispute regarding possession and essential amenities of licensed premises between parties arising out of a license agreement - Interim arrangement made by appointing a Local Commissioner to take over possession of the premises until adjudication through arbitration.

Statutory provision(s): Arbitration and Conciliation Act, 1996 Sections 9, 11, 12, 17; Indian Easements Act, 1882 Section 63

Unison Hotels Pvt. Ltd. v. Night Beat Hospitality Pvt. Ltd., (Delhi) : Law Finder Doc Id # 2791752