Delhi High Court appoints arbitrator to decide PVR INOX – Ansal plaza mall dispute

The Delhi High Court has appointed an arbitrator to resolve disputes between PVR INOX and Greater Noida’s Ansal Plaza Mall [PVR INOX Ltd v Sheetal Ansal & Anr].

In an order passed on July 30, Justice C Hari Shankar said that advocate Sumeet Pushkarna will act as the arbitrator.

“Prima facie, an arbitrable dispute has arisen between the parties, which is amenable to arbitration in terms of the arbitration clause extracted hereinabove. Accordingly, 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 Mr. Sumeet Pushkarna, Advocate, as the arbitrator to arbitrate on the disputes between the parties,” the Court ordered.

PVR INOX’s 4-screen multiplex in Ansal Plaza Mall, Greater Noida, got sealed due to alleged non-payment of government dues by the lessor Sheetal Ansal.

In the Delhi High Court, PVR INOX has filed two arbitration petitions raising a claim of around ₹4.5 Crore against Ansal.

The Gautam Budh Nagar authorities on June 6, 2022, issued an order for recovery of statutory dues of ₹26.33 crore in the name of Ansal Property & Infrastructure Ltd.

PVR INOX claimed that despite repeated requests and communications, the lessor did not deposit the dues and did not resolve the issue with the government authorities which led to the sealing of the entire mall including the multiplex on July 23, 2022.

PVR INOX also submitted that as per terms of the lease, the lessor is liable to pay all taxes, levies and charges by the government authorities, and due to Ansal’s breaches and defaults in fulfilling the obligations, its multiplex got sealed and PVR INOX could not access and operate its cinema business from the said premises and suffered huge losses.

Meanwhile, Ansal’s lawyer told the Court that they also have a counter-claim against PVR INOX which may be around ₹ 4 to ₹ 5 crores and this should also be agitated in the arbitral proceedings.

The Court said that Asnal shall be entitled to raise all legal objections including counter claims before the arbitral tribunal.

“Respondent 1 [Ansal] shall also be entitled, in the arbitral proceedings, to take all legal objections, preliminary as well as on merits. Respondent 1 shall also be entitled to urge any counter-claim which she may choose to urge in the arbitral proceedings in accordance with law,” the order said.

Advocates Sumit Gehlot, TS Thakran, and Rukon Vadhera appeared for PVR INOX.

Advocates Anand Mishra, Sachin Midha, and Aditya Vikram Bajpai appeared for Sheetal Ansal. Bar & Bench