Delhi HC Steps In: Arbitrator Appointed to Resolve PVR INOX and Ansal Plaza Mall Dispute

Delhi HC Appoints Arbitrator for PVR INOX and Ansal Plaza Mall Dispute:

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 because the lessor, Sheetal Ansal, did not pay government dues.

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

Justice C Hari Shankar noted that an arbitrable dispute exists and appointed an arbitrator since the parties couldn’t agree on one. The court also allowed the lessor to present a counter-claim in the arbitration proceedings.

PVR INOX’s lawyer, Sumit Gehlot, stated that his client entered a lease agreement on June 7, 2018, with Sheetal Ansal, leasing space for a four-screen multiplex on the 3rd and 4th floors of Ansal Plaza Mall. PVR INOX deposited Rs 1.26 crore as security and invested heavily in furniture, equipment, and interior work to operate the multiplex.

On June 6, 2022, the SDM of Gautam Budh Nagar Sadar issued a notice for Rs 26.33 crore in unpaid dues from Ansal Property and Infrastructure Ltd. Despite repeated requests from PVR INOX, the lessor did not address the issue, leading to the mall’s sealing, including the multiplex, on July 23, 2022.

PVR INOX claims that the lessor was responsible for all taxes and dues under the lease terms. Due to the lessor’s failure to pay, PVR INOX suffered significant financial losses. PVR INOX is seeking indemnification for these losses, including the Rs 1.26 crore lease security deposit, Rs 6 lakh CAM security deposit, 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 handle the claim. PVR INOX was represented by Advocate Sumit Gehlot from Fidelegal Advocates & Solicitors.