Mr. Kanwar Sain vs Airport Authority Of India And … on 2 April, 2002

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Delhi High Court
Mr. Kanwar Sain vs Airport Authority Of India And … on 2 April, 2002
Equivalent citations: 2002 (2) ARBLR 146 Delhi, 97 (2002) DLT 537, 2002 (62) DRJ 554
Author: J Kapoor
Bench: J Kapoor

JUDGMENT

J.D. Kapoor, J.

1. In response to an invitation to tender for
management of computerized car parking at terminal no. 1,
I.G.I. Airport, New Delhi, the petitioner submitted its
tender. The petitioner’s tender was accepted and
license/contract was awarded to him vide letter of
acceptance dated 7.11.1996 initially for a period of one
year. The contract was extendable for a further period of
two years. However, the contract/license was terminated
on 20.11.1997. Feeling aggrieved, the petitioner filed a
civil suit for injunctions according to the him, as per
terms of the contract, license was extendable by further
period of two years. Though ex-parte injunction was
granted but finally suit was dismissed.

2. Admittedly there was an arbitration clause in
the agreement between the parties. The disputes raised by
the petitioner in this petition pertain to the period
subsequent to the termination of contract. The main
grievance of the petitioner is that the respondents
committed breach of contract by not providing air bus
parking to the petitioner though it was part of contract
and included in license fee of Rs. 4,35,000/- p.m. and as
such petitioner is entitled to 30% rebate on total license
fee. Admittedly, petitioner was allowed to run only car
parking at Airbus parking area. The dispute whether he is
entitled to claim 30% rebate on total license fee because
of the failure of the respondent to provide him Airbus
Parking is not a dispute which comes within the ambit of
contract. Similarly the dispute whether petitioner has
been put to loss for the period subsequent to termination
of contract and his continuation by the order of court
up to 7.8.1998 is again not a dispute which comes within
the terms of the contract or agreement. The dispute that
the applicant was not allotted Indian Airlines Cargo
Parking and Courier Terminal Parking and courtesy coach
parking areas is not relevant so far as contract/license
is concerned. There was no privity of contract between
the petitioner and the respondent in this regard. If at
all the petitioner has any such grievance, he can seek
remedy against Indian Airlines.

3. A party is entitled to seek redressal of the
disputes through arbitration if such disputes arise out of
the contract between the parties and that too during the
subsistence of the contract. Since the disputes referred
in the petition do not pertain to the period when the
contract was subsisting and some of the disputes raised by
the petitioner are such which do not come within the arena
of the contract or agreement between the parties nor
respondents are concerned with such claims as referred by
the petitioner in the petition, the question of
appointment of Arbitrator does not arise.

4. Further more, the contract for car parking was
initially for one year only. Merely because there was a
clause that this term was extendable by another two years
did not vest any statutory right in the petitioner to get
extension for further period of two years and did not mean
that respondents were under any legal obligation to extend
period of contract. The petitioner has already exhausted
the remedy against termination of contract after a period
of one year before Addl. District Judge by way of civil
suit. It appears that when he did not succeed there, he
has resorted to these proceedings.

5. In view of the foregoing reasons, I do not find
any merit in the petition and dismiss the same.

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