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Concerns regarding payment of rent by Cinema halls during lockdown to be resolved via arbitration
The Delhi High Court in Dart Properties (P) Ltd. v. Cinema Ventures (P) Ltd.[1], issued notice to the respondent in a petition filed under Section 9 [interim measures, etc., by the court] of the Arbitration and Conciliation Act, 1996.
In the instant petition, it was stated that the disputes arose between the parties about arrears of rent and other charges arising under the Memorandum of Understanding (MOU).
The said MOU was initially executed between the petitioner and Adlabs Films Limited. Subsequently, Reliance Media Works Limited stepped into the shoes of Adlabs Films Limited and later transferred its business in favour of the respondents.
The Deed of Adherence recorded that the parties had entered into the MOU and the Addendum further. The deed also mentioned that the respondent agreed and confirmed that it should be bound by all the agreement's provisions as entered into with the original party. The contract shall have the full force of binding effect on the party.
Since the respondent defaulted in making payments towards rent, conducting charges, and CAM charges due under the agreements, the petitioner was constrained to issue the legal notice making the demand of Rs 2.04 Crores.
However, the respondent refuted the above compliance citing the COVID-19 pandemic situation.
Petitioner’s counsel further submitted that, though the arbitration clause has not yet been invoked, the petitioner has all intention to gather the same.
Adding to the above, it was submitted that pending the appointment of the Arbitral Tribunal, the urgent interim direction was necessary.
The bench directed for the notice to the respondent by all modes upon filing the processing fee, returnable on 05-04-2021.
[1] 2021 SCC OnLine Del 990.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre shall not be responsible for any errors caused due to human error or otherwise.
- force majure laws
- conclusion through arbitration
- cinema hall rent payment during lockdown
