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Bharat Sewa Sansthan Versus U.P. Electronics Corporation Limited

C.A. 2016 Of 2006 - Dated:- 29-8-2007 - Sema Hotoi Khetoho And Panta Lokeshwar Singh, JJ. JUDGMENT: Lokeshwar Singh Panta, J. 1. Bharat Sewa Sansthan has filed this appeal challenging the final judgment and order dated 14.09.2004 of the learned Single Judge of the High Court of Judicature at Allahabad, Lucknow Bench, in Writ Petition No. 3388/2004(MS) by which the order of the learned Additional District Judge (Special Judge, E.C. Act) Lucknow, dismissing the application filed by the U.P. Electr .....

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charitable society registered under the Societies Registration Act. The main object of the appellant-Sansthan is to work for the social, economic, educational and cultural upliftment of the people. The appellant-Sansthan is the sole and exclusive owner of multistoreyed building known as "Chandra Bhanu Gupta Smarak Nav Chetna Kendra" located at No. 10, Ashok Marg in the city of Lucknow (U.P.). On 11.11.1980, the respondent- Corporation took for office accommodation an area measuring 14, .....

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mon passages and sewerages etc. under a lease granted by the appellant-Sansthan to the respondent-Corporation on 01.12.1980. 3. It is the case of the appellant-Sansthan that in the month of June, 1981 the respondent-Corporation expressed its requirement to the appellant-Sansthan for some additional accommodation on the first floor of the building adjoining to the accommodation which the respondent-Corporation had earlier occupied for setting up a Marketing Office and a Registered Office of M/s U .....

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377; 9,750/- i.e. @ ₹ 3.20 per sq. ft., which comprised of (a) basic rent @ ₹ 2/- per sq. ft. amounting to ₹ 6000/- and (b) balance amount of ₹ 3750/- @ ₹ 1.20p. per sq. ft. towards such ancillary charges as has been included in the case of the lease in respect of the first portion of the accommodation let out to the respondent-Corporation. 4. It is further the case of the appellant-Sansthan that the tenancy of both the portions of the accommodation let out to the r .....

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was determined. The appellant-Sansthan on 10.03.2000 filed Suit No. 16/2000 for eviction and recovery of arrears of rent against the respondent-Corporation in the Court of learned Additional District Judge (Special Judge, E.C. Act) at Lucknow. In the said suit, the respondent-Corporation presented two applications before the Trial Court before filing of the written statement. The first application being C-12 was moved under Section 8(1) of the Arbitration and Conciliation Act, 1996 (for short & .....

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the writ petition and held that the learned Trial Court has wrongly rejected the application under Section 8 of the Arbitration Act as the subject-matter of the suit is arbitral with further direction to the learned Additional District Judge (Special Judge, E.C. Act), Lucknow, to refer the matter to arbitration and both the parties may appoint their Arbitrator as per the arbitration clause in the lease agreement. 6. Feeling aggrieved, the appellant-Sansthan has filed this appeal, by special leav .....

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appeal was called on for hearing on 11.07.2006, when the following order came to be passed:- "The case was argued at length by Mr. Shanti Bhushan, learned Senior Counsel for the appellant. We also heard reply on certain preliminary issues from Mr. Manoj Swarup, learned counsel for the respondents. We also permit Mr. Manoj Swarup to file additional documents in this appeal. In the meanwhile, the respondent \026 U.P. Electronics Corporation Limited shall handover peaceful vacant possession of .....

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e in a position to pass a detailed order. Treat this matter as partheard. Post this matter at 2.00 p.m. on 12th July, 2006." 9. On 12.07.2006, this Court passed a detailed order, which reads as follows:- "After hearing both the parties, we passed the following order on 11th July, 2006. "The case was argued at length by Mr. Shanti Bhushan, learned Senior Counsel for the appellant. We also heard reply on certain preliminary issues from Mr. Manoj Swarup, learned counsel for the respo .....

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for the portion in their occupation at the admitted rate. Since some details are required, we direct both the parties to file a memo of calculation before this Court so that this Court will be in a position to pass a detailed order. Treat this matter as part-heard. Post this matter at 2.00 PM on 12th July, 2006." As directed Mr. Manoj Swarup, learned counsel for the respondent-Corporation placed before us a Fax Message from U.P. Electronics Corporation Limited in regard to the total rent pa .....

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1.04.06-30.6.06 133335.00 0 133335.00 0 TOTAL 8430830.75 5161682.25 3269155.50 646650.00 From 1.4.2006 to 30.6.2006 @ ₹ 44445/- per month (50% proposed to be retained) UPLC Liability \026 ₹ 2622505.50 (payable as per area occupied and approved by the Management) UPLC UIL Rent of Front Portion 64923.75 x 12 = Area 14925@ ₹ 4.35 per sq. ft. 779085.2 389542.50 389542.50 Rent of Rear Portion 14100 x 12 = Area 3000 @ ₹ 4.72 per sq. ft. (exclusively in the use of UPTRON) 16920 .....

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d has also deducted the tax in a sum of ₹ 6,46,650/-. Thus, as per the fax message, the rent is calculated upto 30.6.2006. We, therefore, direct U.P. Electronics Corporation Limited to pay rent from 1st July, 2006 to the appellant herein for the actual area in their occupation as per the terms of the agreement. The rent shall be paid on or before 10th of every succeeding month without any default. The respondent shall hand over peaceful vacant possession to the appellant herein within one .....

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in full. The U.P. Electronics Corporation Limited is directed to pay the entire arrears to the authorities concerned within four week from today. This order is passed as an interim measure without prejudice to the rights and contentions of both the parties. It is open to both the parties to file additional documents. Treat this matter as part-heard. Post after six weeks for reporting compliance of the aforesaid directions. Pendency of this appeal before this Court will not prevent the parties fr .....

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to file reply to this Calculation Memo within the said time. Parties will discuss further in regard to the possession and readjustment of the areas and file reply thereto. Further directions will be made on the next adjourned date of hearing." 11. On 7.11.2006, upon hearing the counsel on both sides, this Court made the following order:- "Memo of Understanding between the parties to this appeal filed in this Court, pursuant to this Court s order dated 8.9.2006, is taken on record. A r .....

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portion marked in pink and also constructed wall separating the pink and green marked portion. Since the undertaking has not been complied by M/s. U.P. Electronics Corporation Limited further time is given to them to comply with the undertaking by three weeks from day. The clause (c) of the Memorandum shall be complied with in full and the entire portion shall be handed over to the appellant within that time and also the construction of the wall shall be completed in time. When the matter came .....

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ant Bhushan, learned counsel for the appellant placed before us a Statement in respect of the amount due in regard to 60% area occupied b y the respondent and their subsidiaries upto June, 2006. A copy of the said Statement has also been furnished to the learned counsel for the respondent. Post after two weeks for filing response by the respondent." 13. In terms of the above extracted interim orders passed by this Court on a number of hearings, the appellant-Sansthan submitted its statement .....

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45.00 in regard to TDS Certificates. Further, a sum of ₹ 13,38,492.43 has been claimed on account of water & sewerage tax from July 1997 to June 2006. The appellant-Sansthan has also claimed a sum of ₹ 40,95,867/- on account of interest at the rate of 12% p.a. on the arrears of rent in relation to 15,925 sq. ft. area which was let out to the respondent-Corporation in the year 1980. 14. In response to the order of this Court, the respondent- Corporation has filed affidavit dated 1 .....

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has been paid to the appellant-Sansthan. The respondent- Corporation stated that as per its statement of calculation and after deduction of the amount already paid in pursuance to the interim order of this Court, the amount payable in respect of the portion which was under occupation of M/s Uptron India Limited and the possession thereof has already been handed over to the appellant-Sansthan (subject to the adjustment made in the MOU dated 10.10.2006) comes to ₹ 75,47,368.50 which is more .....

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; sewerage tax comes to ₹ 5,95,238.80 for the area which is in possession of the respondent-Corporation. The respondent-Corporation contended that as per the calculation sheet annexed with the affidavit-in-reply, the balance amount comes to ₹ 24,558.20 towards water & sewerage tax for the portion in possession of respondent-Corporation, which is also tendered to the appellant-Sansthan by Cheque No.275979 dated 12.10.2006 of Andhra Bank, Lucknow. The balance amount of ₹ 9,26 .....

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possession of the respondent-Corporation. The possession of 60% area which was previously in use and occupation of M/s Uptron India Limited, which is a Sick Industrial Company, has already been given to the appellant- Sansthan and the payment of rent for the said area is not covered under the directions of this Court. It is stated that the calculation chart submitted by the appellant-Sansthan showing the amount due and payable pertains to 60% portion for which rent was paid by M/s Uptron India L .....

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lause I(3) of the lease agreement as alleged by the appellant-Sansthan is not applicable in the present case and as such no interest at the rate of 12%, as claimed, is payable and the appellant-Sansthan has calculated the interest on total amount of rent payable in respect of total area including the one which was under use and occupation of M/s Uptron India Limited. 17. We have heard the learned counsel for the parties and examined the material on record. 18. Shri Shanti Bhushan, learned senior .....

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llant-Sansthan in getting its legitimate claims settled as per the calculation statement submitted before this Court in terms of its interim orders. 19. Per contra, Shri Manoj Swarup, learned counsel for the respondent-Corporation, submitted that the balance amount of arrears of rent, payment of water & sewerage tax and the amount of interest as claimed by the appellant-Sansthan in its calculation statement cannot be decided by this Court in the absence of any satisfactory and tangible evide .....

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1.1980 the respondent- Corporation took from the appellant-Sansthan an area measuring 14,925 sq. ft. on monthly rent under a lease agreement. In June 1981, the appellant-Sansthan let out additional accommodation measuring 3000 sq. ft. area on monthly rent for setting up Marketing Office of M/s Uptron India Limited, which is the subsidiary of the respondent- Corporation. The appellant-Sansthan filed suit for recovery of arrears of rent and ejectment of the respondent-Corporation from the demised .....

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nt-Corporation filed under Section 8(1) of the Arbitration Act. It was the specific case of the respondent-Corporation before the High Court that the original agreements are in the possession of the appellant- Sansthan, whereas the stand of the appellant-Sansthan was that the original agreements are not in its possession. The respondent-Corporation placed on record of the trial court photocopies of the agreements along with an application under Section 8(1) of the Arbitration Act. The High Court .....

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ion of India as submitted by Shri Shanti Bhushan, grant the payment of balance of arrears of rent, payment of balance arrears of water & sewerage tax and interest on the arrears of rent to the appellant-Sansthan, which amounts are disputed by the respondent-Corporation before us. The nature and ambit of the power of this Court under Article 142 of the Constitution of India, no doubt, is meant to do complete justice between the litigating parties, but at the same time this Court has to bear i .....

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palpable injustice is shown to have resulted to the parties. 23. In the light of above factual aspects, the claim relating to balance arrears of rent, balance arrears of water & sewerage tax and rate of interest on payment of arrears of rent raised by the appellant-Sansthan in its calculation statement filed before this Court is at variance with the calculation statement submitted by the respondent-Corporation. The respondent- Corporation has denied the payment of interest to the appellant- .....

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oceedings in settlement of disputes, etc. etc. This Court ordinarily will not be obliged to bypass the provisions of the Arbitration and Conciliation Act, 1996 in exercise of its power and jurisdiction under Article 142 of the Constitution of India. 24. In the backdrop of this case, we do not find it a fit case to grant relief to the appellant-Sansthan as claimed by it in its calculation statement which is vehemently disputed by the respondent-Corporation. Therefore, the contention of the appell .....

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