Gallops has no rights to remain in race course' - TOI
Posted on - 18 Jan 2018
Gallops has no rights to remain in race course’
Don’t Enter Premises: Arbitrator
Swati Deshpande@timesgroup.com
Mumbai: Four months after winning Rs 34 crore in damages, Royal Western India Turf Club has now won back its premises from BJR’s, a firm that runs Gallops restaurant at Mahalaxmi race course. A sole arbitrator on Wednesday directed BJR’s to vacate the restaurant area and never enter or remain there.
The arbitrator, former Chief Justice of Allahabad high court Ferdino Inacio Rebello, passed an additional award—an order in an arbitration—after the Club said he had had omitted to specifically direct BJR’s to move out.
The Club had terminated its 2008 “catering contract’’ with Gallops prompting a legal battle to land in the Bombay HC in 2011, when an arbitrator was first appointed. The arbitrator last September held the termination was valid and also directed the restaurant to pay the club, at a rate of Rs 6.3 crore per annum “till it removes itself or is evicted”. The Club approached the arbitrator in October for an additional direction to have the restaurant staff, agents and belongings removed from the premises to regain possession. The Club’s counsel, Soli Cooper, argued that an arbitral tribunal has jurisdiction to correct and interpret an award. He argued that the claim for possession was not considered by the arbitrator earlier and hence cannot be held to be rejected.
Cherag Balsara, counsel for BJR’s, had argued that after expressly having rejected all other reliefs, except of monetary compensation, last September, the arbitrator cannot grant additional reliefs for possession.
The arbitrator, however, agreed with the Club’s submissions in his January 17 award. He said, “Once, the tribunal has recorded a finding that the Respondent (BJR’s) is neither a lessee nor a licensee, but a trespasser after termination of the catering contract, this Tribunal has jurisdiction to grant the relief sought including of eviction.’’ He added that since the ‘conducting agreement was terminated by the Club, BJR’s has “no right to continue on the premises.’’ The arbitrator thus directed BJR’s to remove themselves and belongings and granted a permanent injunction “from entering and/or remaining upon the Restaurant Area.’’ Gallops claimed it is the Club’s tenant since 1986. The Club, itself a lessee of the city civic body since 1914, said that was not authorized to induct any sub-tenants. The club’s case was that it had only entered into a “conducting agreement” with BJR to run the restaurant and provide catering services.
Balsara said BJR’s had moved the HC last month against the September award and now plans to challenge the additional one too. “The court had in 2010 held that a strong prima facie case of tenancy existed,” Balsara said.
