Delhi HC appoints arbitrator to settle dispute between PVR INOX, Ansal Plaza Mall over sealed multiplex

New Delhi [India], August 2 (ANI): The Delhi High Court has appointed an arbitrator to resolve the dispute between PVR INOX and Ansal Plaza Mall in Greater Noida. PVR INOX claims that its four-screen multiplex at Ansal Plaza Mall was sealed due to unpaid government dues by the lessor, Sheetal Ansal.

PVR INOX has filed a claim of approximately Rs 4.5 crore in the Delhi High Court, seeking arbitration to address the issue.

In an order passed by Justice C Hari Shankar, he said, “Prima facie, an arbitrable dispute has arisen between the parties, which is amenable to arbitration in terms of the arbitration clause extracted. As the parties have not been able to come to a consensus regarding the arbitrator to arbitrate on the disputes, this Court has to intervene. Accordingly, this Court appoints the arbitrator to arbitrate on the disputes between the parties. Court noted that the Counsel for Respondent/lessor also be permitted for counter-claim to be agitated in the arbitration proceedings.”

It was submitted by Advocate Sumit Gehlot for the petitioner that his client, PVR INOX, entered into registered lease agreement dated 07.06.2018 with lessor Sheetal Ansal and took four screen multiplex space situated at 3rd and 4th floors of Ansal Plaza Mall, Knowledge Park-1, Greater Noida.

Under the lease agreement, PVR INOX deposited Rs 1.26 crore as security and invested significantly in moveable assets, including furniture, equipment, and interior works, to operate its multiplex. The SDM Gautam Budh Nagar Sadar issued a notice on June 6, 2022, for recovery of Rs 26.33 crore in statutory dues from Ansal Property and Infrastructure Ltd. Despite PVR INOX’s repeated requests, the lessor did not address the issue, leading to the sealing of the mall, including the multiplex, on July 23, 2022.

PVR INOX claims that the lessor, as per the lease terms, was responsible for all taxes and dues. Advocate Gehlot further submitted that due to the lessor’s failure to meet these obligations, PVR INOX’s multiplex was sealed, resulting in significant financial losses. PVR INOX claims the lessor should indemnify for all losses, including the lease security deposit of Rs 1.26 crore, CAM security deposit of Rs 6 lakh, Rs 10 lakh for moveable assets, Rs 2,06,65,166 for movable and immovable assets with interest, and Rs 1 crore for business losses, reputation, and goodwill.

After terminating the lease and receiving no response to its demands, PVR INOX filed two petitions under Section 11 of the Arbitration & Conciliation Act, 1996, in the Delhi High Court.

On July 30, 2024, Justice C. Hari Shankar appointed an arbitrator to adjudicate the claim. PVR INOX was represented by Advocate Sumit Gehlot from Fidelegal Advocates & Solicitors.