In a recent Delhi High Court judgment, the legal dispute between RLDA and the successful bidder for the multi-functional complex at Salem Railway Station was addressed. The court examined the termination of the Lease Agreement and issues related to construction hindrance. Stay informed about this intriguing case!
Facts
- Appellant terminated the Lease Agreement due to construction of an escalator shed by RLDA, blocking internal road.
- Appellant filed a writ petition claiming similar reliefs before Madras High Court, which were not granted.
- Appellant had participated in bidding process and was declared successful bidder for construction of multi-functional complex at Salem Railway Station.
- Appellant filed application under Section 9 of Arbitration and Conciliation Act, 1996, requesting non-interference by RLDA in possession and enjoyment of multi-functional complex.
Analysis
- The appellant terminated the Lease Agreement but did not pay the lease rentals as required.
- The appellant insists on occupying the site and recovering rent from sub-lessees.
- The only claim the appellant can have is a monetary claim due to non-payment of lease rentals.
- The learned Single Judge rejected the appellant’s application under Section 9 of the A&C Act.
- The shed is constructed on the road, the only access to the building as per the tender document and sanction plan.
- The appellant has availed huge loans for the building construction and sublet only a part of the portion.
- Appellant cannot retain possession of the complex after terminating the Lease Agreement.
Case Title: M/S FINE GREEN CONSTRUCTIONS PVT. LTD Vs. RAIL LAND DEVELOPMENT AUTHORITY & ORS. (2024:DHC:4594-DB)
Case Number: FAO(OS) (COMM)-112/2024
