Central Warehousing Corporation & Anr. Vs Sidhartha Tiles & Sanitary Pvt. Ltd. (Supreme Court of India)
Summary: The Supreme Court considered whether the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 overrides the Arbitration and Conciliation Act, 1996, and whether the High Court erred in appointing an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
Central Warehousing Corporation, a statutory body under the Warehousing Corporations Act, 1962 and under the administrative control of the Ministry of Consumer Affairs, Government of India, had provided 1295 sq. mtrs. of storage space to M/s Sidhartha Tiles & Sanitary Pvt. Ltd. Possession was handed over on 12.09.2012. A lease agreement dated 26.09.2012 provided for a three-year period commencing from 12.09.2012 and expiring on 11.09.2015, with renewal by mutual consent. The storage rate was fixed at Rs. 131 per square metre per month. Clause 16 contained an arbitration clause.
During the subsistence of the agreement, the Corporation communicated revisions to the storage charges. A demand for enhanced payment with effect from 01.11.2012 was raised, followed by further communications dated 10.05.2013 and 31.12.2014. The storage charges were subsequently revised with effect from 01.04.2015, and the respondent was informed that the tariff would be Rs.177 per sq. mtr. per month.
