International Amusement Ltd. v. India Trade Promotion Organisation
Background
The operator of Appu Ghar at Pragati Maidan sought arbitration after being asked to vacate licensed public land. It claimed that assurances and substantial investments supported permanent allotment. A High Court judge appointed an arbitrator, but the Division Bench set that appointment aside in proceedings brought by the India Trade Promotion Organisation.
Decision Breakdown
The Supreme Court dismissed the operator's appeals and upheld the order setting aside the arbitrator's appointment. Examining the licence and the authorities it relied upon, the Court held that clause 28 was not an arbitration agreement enforceable for the requested reference. It rejected the operator's attempt to continue those arbitration proceedings and directed any pending proceedings under the Public Premises Act to continue before the Estate Officer. The ruling upheld the dismissal of the appointment request and did not itself award compensation for the operator's investment or declare it a permanent allottee.
Lesson Learnt
Assurances, investment and a contractual dispute clause do not automatically establish a right to the arbitration remedy sought. An occupier of public premises must consider the statutory forum and the court's interpretation of the actual licence provisions.