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Issues: (i) whether the agreement created a tenancy or only entrusted the appellant with management of the flower counter so that the dispute was arbitrable; (ii) whether the arbitral proceedings were vitiated for breach of natural justice and denial of adequate opportunity; and (iii) whether the award was opposed to public policy.
Issue (i): whether the agreement created a tenancy or only entrusted the appellant with management of the flower counter so that the dispute was arbitrable.
Analysis: The agreement showed that the society retained legal, physical and symbolic possession of the unit. The appellant had to collect and return the key daily, maintained the counter under the society's control, and did not receive exclusive possession. The monthly payment was structured as minimum guaranteed commission linked to sales, not as fixed rent. On these features, the arrangement was not a lease or tenancy, and the dispute did not fall within the bar applicable to tenancy matters protected by special statute.
Conclusion: The arrangement was not a tenancy, and the dispute was arbitrable.
Issue (ii): whether the arbitral proceedings were vitiated for breach of natural justice and denial of adequate opportunity.
Analysis: The record showed repeated adjournments and a prolonged arbitral process. The appellant had sufficient opportunity to defend the claim, and the grievance of haste or denial of hearing was unsupported. In arbitral proceedings, the tribunal is not bound by the rigours of ordinary civil procedure, and the opportunity granted satisfied the requirement of fair hearing.
Conclusion: There was no breach of natural justice.
Issue (iii): whether the award was opposed to public policy.
Analysis: The award enforced the contractual terms on termination, possession and liquidated damages. The tribunal acted within its jurisdiction and decided the dispute after hearing both sides. As the award was neither arbitrary nor contrary to the contractual framework, it did not offend the public policy standard governing challenge under Section 34.
Conclusion: The award was not opposed to public policy.
Final Conclusion: The challenge to the award failed in all material respects, and the arbitral direction for recovery of possession and liquidated damages was sustained.
Ratio Decidendi: Where the grantor retains control and exclusive possession is absent, an arrangement framed as management of a unit will not be treated as a tenancy; disputes arising from such contractual arrangements are arbitrable, and an award rendered after adequate opportunity will not be set aside for breach of natural justice or public policy.
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