Interim payment under Section 9 is permissible for admitted or wrongly disputed dues in a composite lease dispute.

In Section 9 proceedings under the Arbitration and Conciliation Act, 1996, the Court may grant interim payment directions where dues are admitted or wrongly disputed, because the provision places the Court in a position analogous to its civil powers for interim protection. Applying that principle, the HC upheld directions to pay arrears and continue monthly rent where the tenant remained in occupation of one unit, had no legal basis to terminate only part of a composite lease, and offered no plausible defence to non-payment. The interim payment order was therefore permissible and the challenge failed.

---

---

Issues: Whether, in proceedings under Section 9 of the Arbitration and Conciliation Act, 1996, the Court could direct payment of rent or damages when liability was at least admitted in part and the tenant had attempted to terminate only part of a composite lease.

Analysis: Section 9 confers power to grant interim measures of protection and expressly places the Court in the same position as in proceedings before it. On that basis, the Court held that powers analogous to those under Order XXXIX Rule 10 of the Code of Civil Procedure, 1908 and Order XV-A of the Code of Civil Procedure, 1908 could be exercised in appropriate cases to secure payment of admitted or wrongfully disputed amounts. The appellant had admittedly continued as tenant of one unit, had no legal right to terminate only part of the premises taken under a single lease transaction, and had offered no plausible defence to non-payment. The direction to pay arrears and continue monthly payment therefore fell within the ambit of Section 9.

Conclusion: The direction for payment was held to be permissible under Section 9 of the Arbitration and Conciliation Act, 1996, and the challenge by the appellant failed.

Ratio Decidendi: The Court exercising jurisdiction under Section 9 of the Arbitration and Conciliation Act, 1996 may grant an interim direction for payment of admitted or wrongly disputed dues where such relief is within the Court's civil powers for interim protection.

---