TaxTMI 
TaxTMI 
2007 (8) TMI 777
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....n a nutshell are as follows: Bharat Sewa Sansthan [hereinafter referred to as the 'appellant-Sansthan] is a charitable society registered under the Societies Registration Act. The main object of the appellant-Sansthan is to work for the social, economic, educational and cultural upliftment of the people. The appellant-Sansthan is the sole and exclusive owner of multistoreyed building known as "Chandra Bhanu Gupta Smarak Nav Chetna Kendra" located at No. 10, Ashok Marg in the city of Lucknow (U.P.). On 11.11.1980, the respondent- Corporation took for office accommodation an area measuring 14,925 square feet on the first floor of the multi-storeyed building of the appellant-Sansthan on monthly rent of Rs. 47,760/- @ Rs. 3.20p per square foot, which comprised (a) basic rent @ Rs. 2/- per square foot amounting to Rs. 29,850/- and (b) the balance amount of Rs. 17,910/- @ Rs. 1.20p per square foot towards the ancillary services provided for the said accommodation in the form of elevators (lifts), a designated area for parking of vehicles, lights for public and common passages and sewerages etc. under a lease granted by the appellant-Sansthan to the respondent-Corporation on 01.12.1980. ....
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....C-17 was filed under Order XI Rule 14 of the Civil Procedure Code for summoning of the original lease deeds from the appellant- Sansthan. 5. Learned Additional District Judge (Special Judge, E.C. Act), Lucknow, had rejected both the above-said applications. Being aggrieved, the respondent-Corporation has assailed the order of the Trial Court by way of Writ Petition before the High Court. The learned Single Judge of the High Court allowed the writ petition and held that the learned Trial Court has wrongly rejected the application under Section 8 of the Arbitration Act as the subject-matter of the suit is arbitral with further direction to the learned Additional District Judge (Special Judge, E.C. Act), Lucknow, to refer the matter to arbitration and both the parties may appoint their Arbitrator as per the arbitration clause in the lease agreement. 6. Feeling aggrieved, the appellant-Sansthan has filed this appeal, by special leave, challenging the correctness and validity of the impugned judgment and order of the learned Single Judge of the High Court. 7. When the matter came up before the Court on 24.03.2006, this Court passed the following orders:- "I.A. No. 2 of....
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....s to file a memo of calculation before this Court so that this Court will be in a position to pass a detailed order. Treat this matter as part-heard. Post this matter at 2.00 PM on 12th July, 2006." As directed Mr. Manoj Swarup, learned counsel for the respondent-Corporation placed before us a Fax Message from U.P. Electronics Corporation Limited in regard to the total rent payable to the appellant upto 30.06.2006. The Fax Message reads thus: "U.P. ELECTRONICS CORPORATION LTD. Total rent payable to BSS upto 30.06.2006 Financial year Rent UIL UPLC TDS Paid 1 2 3 4 5 Upto 31.3.2001 3556068.75 948285.00 2367966.75 558742.50 2001-2002 1188104.00 389542.50 218145.00 85700.00 2002-2003 948285.00 558742.50 389542.50 85700.00 2003-2004 948285.00 558742.50 389542.50 85700.00 2004-2005 948285.00 558742.50 389542.50 85700.00 2005-2006 948285.00 558742.50 389542.50 85700.00 1.04.06-30.6.06 133335.00 0 133335.00 0 TOTAL 8430830.75 5161682.25 3269155.50 646650.00 From 1.4.2006 to 30.6.2006 @ Rs. 44445/- per month (....
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....tling the matter amicably." 10. The appeal was listed for hearing on 08.09.2006, when further following order was recorded:- "Learned senior counsel for the appellant has placed before us a fresh calculation memo with the Statement of Accounts duly stamped by a Chartered Accountant. Mr. Krishnamani, learned senior counsel appearing for the respondent seeks time to respond to the Memo of Calculation filed now. Three weeks' time is granted for the purpose. The respondent is directed to file reply to this Calculation Memo within the said time. Parties will discuss further in regard to the possession and readjustment of the areas and file reply thereto. Further directions will be made on the next adjourned date of hearing." 11. On 7.11.2006, upon hearing the counsel on both sides, this Court made the following order:- "Memo of Understanding between the parties to this appeal filed in this Court, pursuant to this Court's order dated 8.9.2006, is taken on record. A rough sketch plan is also attached to the Memo of Settlement. Clause (c) of the Memo says that the respondent, namely, U.P. Electronics Corporation Limited will vacate the portion marked in pink as per ....
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....er & sewerage tax from July 1997 to June 2006. The appellant-Sansthan has also claimed a sum of Rs. 40,95,867/- on account of interest at the rate of 12% p.a. on the arrears of rent in relation to 15,925 sq. ft. area which was let out to the respondent-Corporation in the year 1980. 14. In response to the order of this Court, the respondent- Corporation has filed affidavit dated 18.11.2006 along with details of calculations of arrears of rent of 40% area; arrears of rent of 60% area and also details of calculation of amount for water & sewerage tax. The stand of the respondent- Corporation in the affidavit is that in pursuance to the interim order of this Court dated 12.07.2006, a sum of Rs. 32,69,155.50 towards arrears of rent (Rs.25,95,310.50 as rent and Rs. 6,73,845.00 as TDS] for the 40% portion, which was actually occupied by the respondent-Corporation, has been paid to the appellant-Sansthan. The respondent- Corporation stated that as per its statement of calculation and after deduction of the amount already paid in pursuance to the interim order of this Court, the amount payable in respect of the portion which was under occupation of M/s Uptron India Limited and the posses....
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....poration was always ready and willing to make payment of agreed rent for the portion under its occupation and, in fact, it had tendered the amount, which was not accepted by the appellant-Sansthan. It is also stated in the affidavit that Clause I(3) of the lease agreement as alleged by the appellant-Sansthan is not applicable in the present case and as such no interest at the rate of 12%, as claimed, is payable and the appellant-Sansthan has calculated the interest on total amount of rent payable in respect of total area including the one which was under use and occupation of M/s Uptron India Limited. 17. We have heard the learned counsel for the parties and examined the material on record. 18. Shri Shanti Bhushan, learned senior counsel appearing on behalf of the appellant-Sansthan, submitted that this Court in exercise of its jurisdiction under Article 142 of the Constitution of India for doing complete justice to the appellant-Sansthan is empowered to pass an order of payment of arrears towards water & sewerage tax and payment of interest at the rate of 12% p.a. on the arrears of rent in terms of the agreement. He submitted that sending the matter at this stage to the Arbi....
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....ced on record of the trial court photocopies of the agreements along with an application under Section 8(1) of the Arbitration Act. The High Court, in our view, has rightly held that the photocopies of the lease agreements could be taken on record under Section 8 of the Arbitration Act for ascertaining the existence of arbitration clause. Thus, the dispute raised by the appellant-Sansthan against the respondent-Corporation in terms of the arbitration clause contained in the lease agreement is arbitral. 22. Now, the question pressed before us is whether we should, in exercise of our power and jurisdiction under Article 142 of the Constitution of India as submitted by Shri Shanti Bhushan, grant the payment of balance of arrears of rent, payment of balance arrears of water & sewerage tax and interest on the arrears of rent to the appellant-Sansthan, which amounts are disputed by the respondent-Corporation before us. The nature and ambit of the power of this Court under Article 142 of the Constitution of India, no doubt, is meant to do complete justice between the litigating parties, but at the same time this Court has to bear in mind that the power is conceived to meet the situatio....