BHARAT SEWA SANSTHAN versus U.P. ELECTRONICS CORPORATION LTD.

Citation: [2007] 9 S.C.R. 533 · Decided: 29-08-2007 · Supreme Court of India · Bench: H.K. SEMA

Judgment (excerpt)

BHARATSEWASANSTHAN 
A 
v. 
U.P. ELECTRONICS CORPORATION LTD. 
AUGUST 29, :2007 
(H.K. SEMA AND LOKESHWAR SINGH PANT A, JJ.) 
B 
Arbitration Act, .1940: 
s.8-Photocopies of the lease agreement could be taken on record 
,uls. 8 for ascertaining the existence of arbitration clause. 
C 
Object of Act-Discussed. 
Constitution of India, 1950: 
Article 142-Arbitration agreement-Su ii' for recovery of arrears of D 
rent and ejectment of respondent~Corporaiion from demised premises-
Respondent-Corp·oration seeking appointment of arbitrator in view of 
arbitration agreement-Rejected by District Judge-Writ petition allo'Wed by 
High Court-Challenge against-Held, it is not a fit case to grant relief to 
appellant-Sansthan as claimed by it which is vehemently disputed by E 
resporident-Corporation-Dispute raised by parties .10 he adjudicated by 
arbitrator on its own merit in accordance with law-Arbitration Act, 1940-
S.8(1). 
Article I 42-Power under-Scope and ambit of-Discussed. 
. 
. F 
In November 1980, the respondent-Corporation took from the appellant-
Sansthan an area measuring 14,925 sq. ft. on monthly rent under a lease 
agreement. In June 1981, the respondent-Corporation took an additional 
accommodation measuring 3000 sq. ft. area on monthly rent for setting up 
Office of its subsidiary company. The appellant-Sansthan filed suit for recovery 
of arrears of rent and ejectment of the respondent-Corporation from the G 
demised premises. In the trial Court, the respondent-Corporation preferred 
two applications, i.e. one under s. 8(1) of the Arbitration Act and second under 
Order XI Rule 14 CPC for summoning of the original lease deed from the 
appellant-Sansthan. The Additional District Judge rejected both the 
533 
H 
534 
SUPREME COURT REPORTS 
[2007] 9 S.C.R. 
A applications. 
The respondent-Corporation filed writ petition before the High Court. 
It was the specific case of the respondent-Corporation before the High Court 
that the original agreements are in the possession of the appellant-Sansthan, 
and it had placed on record the photocopies of the agreements along with an 
B application under s. 8(1) of the Arbitration Act. · 
The High Court allowed the writ petition holding that the Trial Court 
has wrongly rejected the application under s.8 of the Arbitration Act as the 
subject-matter of the suit is arbitral with further direction to the Additional 
C District Judge to refer the matter to .arbitration. Hence the present appeaL 
The appellant-Sansthan contended 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 and sewerage tax and payment of interest at the rate 
D of 12% p.a. on the arrears of rent in terms of the agreement and that sending 
the matter at this stage to the Arbitrator will prolong the agony of the 
appellant-Sansthan in getting its legitimate claims settled as per the 
calculation statement submitted before this Court in terms of its interi8' 
orders. 
E 
F 
G 
H 
The respondent-Corporation contended that the balance amount of 
arrears of rent, payment of water and sewerage tax and the amount of interest 
as claimed by the appellant-Sansthan in its calculation statement cannot be 
decided by this Court in the absence of any satisfactory and tangible evidence 
appearing on record of this appeal and in terms of the clause of the Agreement, 
this Court will be slow in exercise of its jurisdiction under Article 142 of the 
Constitution of India as the parties are governed by the procedure of the 
Arbitration Act, which is speedy and less expensive for effectin adjudication 
of the dispute in issue. 
Dismissing the appeal, the Court 
HELD: 1. The High Court, has rightly held that the photocopies of the 
lease agreen:ients could be taken on record under s.8 of the Arbitration Act, 
1940 for ascertaining the existence of arbitration clause. Thus, in terms of 
the arbitration clause contained in the lease agreement the dispute raised by 
I. 
·- -·-
• 
the appellant-Sansthan against the respondent-Corporation is arbitral. 
(Para 21) )545-F, GI 
> 
-'"If. 
• 
BHARATSEWASANSTHAN". U.P.ELECTRONICSCORPN.LTD. 
535 
2. The nature and ambit of the power of this Court under Article 142 of A 
the Constitution of India, is meant to do complete justice between the litigating 
parties, but at the same time the power is conceived to meet the situations 

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