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VIBHU BAKHRU, J

1. Movie Times Cineplex Pvt. Ltd. (hereafter „Movie Times‟) has filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter „the Act‟) assailing the arbitral award dated 01.06.2016 (hereafter „the impugned award‟) passed by the sole arbitrator in the context of the disputes that had arisen between the parties in respect of a Lease Deed dated 24.07.2006.

2. The disputes between the parties essentially relate to the extent of the area leased to Movie Times under the Lease Deed dated 24.07.2006 (hereafter „the Lease Deed‟). It is the case of Movie Times that it was given possession of an area of 13235 sq. ft. instead of 16000 sq. ft. (as recorded in the Lease Deed) and therefore, it was entitled to a proportional reduction in the lease rentals and also qualified to recover the excess amount paid in respect of Common Area Maintenance (CAM) charges. On the other hand, the respondents raised counterclaims, inter alia, seeking the rental withheld as well as unpaid CAM charges along with interest.

6. Before the arbitrator, Movie Times raised the following claims:-

"(1) An award that the respondent is not entitled to claim rent for 16000 sft, whereas the respondents are entitled to rent for 13235 sft;
(2) The respondents have no right to claim common area maintenance charges for any area beyond the actual area in occupation of the claimant i.e. 13235 sft;
(3) The respondents have no right to disconnect electricity supply or cause any disruption in the air-conditioning facility provided to the claimant so long as the claimant is paying rent for the actual area provided to the claimant and is paying electricity charges as per consumption; (4) Refund of (i) Rs. 4,68,323/- from the respondent No.1 towards refund of rent for the period 11.08.2006 to 31.3.2007; (ii) Rs.6,10,000/- from the respondent No.2 towards refund of rent for the period 1.4.2007 to 31.3.2008; (iii) Rs.6,66,817/- from the respondent No.3 and respondent No.1 jointly and severally towards refund of extra amount of maintenance charges for the period of 11.8.2006 to 31.1.2008;
(2) Recovery of (i) Rs.45,98,648.00 towards occupation charges; (ii) Rs.11,64,469.00 towards interest @ 18% p.a.;
(iii) Rs.15,86,901.00 towards Service Tax till February, 2011; (iv) Rs.78,88,589.00 towards common area maintenance charges till February, 2011 alongwith interest @ 18% thereon; (v) pendentelite and future interest @ 18% p.a. till payment;
(3) a Declaration holding that the claimant has been handed over the entire area under the lease comprising of 3 screens and provision of 800 seats and for the purpose of calculation of common area maintenance charges and other charges, the area was mentioned a 16,000 sq. ft. as „super area‟ and even otherwise the claimant is in possession of 16,000 sq. ft.;

18. He next contended that Movie Times had deposited the rent regularly till November 2012 but despite the same, electricity had been wrongly disconnected and therefore Movie Times had stopped paying rent as it was not possible for Movie Times to enjoy the leased premises without electricity. He further stated that Movie Times was constrained to use a generator available for power backup after getting the same repaired at considerable cost. He stated that the arbitrator had grossly erred in directing payment of CAM charges from August 2011 till the date of the award as there was no dispute that maintenance services were not rendered after June 2011 and therefore, Movie Times had no obligation to pay such charges. He also referred to clause 5.2 of the Lease Deed which provided that maintenance services were stipulated to be charged for providing elevators, lighting facility for common area, air conditioning in the common area, parking and other common facilities. He submitted that since there was no electricity in the complex after October 2012, therefore, there could be no question of providing maintenance services and thus the decision of the arbitrator to award such charges was perverse and wholly unsustainable.