Bharat Express & Ors vs Union Of India & Ors on 19 May, 2011

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                             AP No.504 of 2011
                     IN THE HIGH COURT AT CALCUTTA
                   ORDINARY ORIGINAL CIVIL JURISDICTION
                              ORIGINAL SIDE

                                 In the matter of:
                              Bharat Express & Ors.
                                      Versus
                               Union of India & Ors.



  BEFORE:
  The Hon'ble JUSTICE I. P. MUKERJI

Date : 19.5.2011.

The Court: Once again a lessee of a parcel van of the railways is before the

Court by filing a Section 9 application.

Their lease is to expire on 20th May, 2011.

The point taken by the petitioner is that Clause 20.1 of the lease

contemplates almost an automatic extension of two years upon satisfactory

performance, but subject to payment of 25% extra freight. It is nobody’s case

that there is any complaint against the petitioner.

However, Mr. Banerjee, learned Counsel for the railway points out that the

petitioner has already invoked the arbitration clause. An Arbitrator is to

adjudicate the dispute between the parties regarding renewal of the lease. An

Arbitrator is to be appointed soon.

Therefore, considering the above case, let the arbitral reference be

completed within a period of three months from date culminating in an award. I
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think that prima facie the petitioner is entitled to continue as lessee on the same

terms and conditions, subject to payment of 25% extra freight. I order

accordingly. This order will be valid till publication of the arbitral award.

This application is disposed of accordingly.

In case signed copy is not obtained, leave is granted to the advocate on

record for the petitioner to communicate the substance of the order to the

railways.

All parties concerned are to act on a signed photocopy of this order on the

usual undertakings.

(I.P. MUKERJI, J.)
SP/