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Arbitration Appointed Despite Lease Expiry Due to Continuing Possession: Calcutta HC

Case Law Details

TaxGuru Citation
2025 taxguru.in 13205
Case Name
G.E.T. Properties Private Limited Vs Union of India (Calcutta High Court)
Date of Judgement/Order
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G.E.T. Properties Private Limited Vs Union of India (Calcutta High Court)

The application before the Calcutta High Court sought appointment of a sole arbitrator to adjudicate disputes arising out of a lease arrangement between the parties. The respondent came into possession of the property under a lease deed executed on 18 March 2016, though the lease was deemed to have commenced from 16 March 2006 and continued until 15 March 2011, with an option for extension. The execution of the lease deed in 2016 with retrospective effect indicated that past possession had been regularised and the lease renewed by implication. However, despite repeated requests by the petitioner, the respondent neither executed a formal renewed lease deed nor paid enhanced rent, although rent continued to be paid at the rate specified in the 2016 lease.

The petitioner’s grievance was that while the terms of the lease were being acted upon, the statutory requirements of formal execution and registration of the lease deed were not being fulfilled and rent was not enhanced. Communications between the parties continued over the years. By a letter dated 29 September 2023, the respondent informed the petitioner that renewal of the lease for multiple periods had been processed, but execution was pending as the respondent, being a government organisation, required certain mandatory clearances. As these steps were not completed, disputes persisted.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,910

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