Arbitration Act 1996
Querist :
Anonymous
(Querist) 26 October 2009
This query is : Resolved
Dear Sir / Madam,
On 19-04-2008, I had entered in to an agreement with Malappuram Municipality to run their amusement park for three years by fixing 1 crore rupees as annual rent. Due to the lack of visitors I failed to pay the agreed rent on time. In the signed agreement, we both parties were admited it as an experimental project and the terms may changed upon the mutual understanding. I requested municipality to reduce the rent with my balance sheet. But they denied my request and I approched hon'ble high court of Kerala for arbitration and the court already ordered for the arbitration. My question is that, what is the real meaning of experimental project as per the terms of law? What is chance for componsation from the municipality for my loss? I had deposited 1 crore rupees as security deposit when sign the contract, wether they forfit this money to the rent defaulted by me? I had invested about 58 Lakhs for improvement in the park and municipality is using the same now, shall I get the money for it?
I hope any experts will answer me properly
Raj Kumar Makkad
(Expert) 26 October 2009
So far terms of the agreement are concerned, both parties are bound by it. According to terms the project is on experimental basis. This only means that if all the things remained suited, the similar project may be continued subject to its review. It do not provide you any benefit. If you have suffered losses in the project, better you humbly persue your matter before arbitrator and pray therein to at least to reimbursement cost of improvement of park and other expenses so that your security may be saved and you may not suffer any loss. definitely in the given circumstances, municipality has an upper hand and you can only pray and not legally enforce them to come to your terms.
