Delhi HC Appoints Arbitrator to Resolve PVR INOX and Ansal Plaza Mall Dispute Over Sealed Multiplex

The Delhi high Court has designated an arbitrator to address the dispute between PVR INOX and Ansal Plaza Mall in Greater Noida. PVR INOX asserts that its four-screen multiplex at Ansal Plaza Mall was sealed due to unpaid government dues owed by the lessor, Sheetal Ansal. 

PVR INOX has submitted a claim of around Rs 4.5 crore to the Delhi High Court, requesting to clear the matter. 

In an Order passed by Justice C Hari Shankar, he said,”Prima facie, an arbitrable dispute has arisen between the parties, which is amenable to arbitration in terms of the arbitration clause extracted. As the parties have not been able to come to a consensus regarding the arbitrator to arbitrate on the disputes, this Court has to intervene. Accordingly, this Court appoints the arbitrator to arbitrate on the disputes between the parties. Court noted that the Counsel for Respondent/lessor also be permitted for counter-claim to be agitated in the arbitration proceedings”.

Advocate Sumit Gehlot, representing the petitioner, said that PVR INOX had entered into registered lease agreements on June 7, 2018, with lessor Sheetal Ansal to occupy the four-screen multiplex space located on the 3rd and 4th floor of Ansal Plaza Mall, Knowledge Park-1, Greater Noida. 

Under the lease agreement, PVR INOX deposited Rs 1.26 crore as security and made considerable investments in movable assets, including furniture, equipment, and interior fittings, to operate the multiplex. On June 6, 2022, SDM Gautam Budh Nagar Sadar issued a notice demanding Rs 26.33 crore in Statutory dues from Ansal Property and Infrastructure Ltd. Despite repeated requests from PVR INOX, the lessor failed to resolve the issue, resulting in the sealing of the mall, including the multiplex, on July 23,2022. 

PVR INOX explains that, under the lease agreement, the lessor was responsible for all the taxes and dues. Advocate Gehlot further stated that the multiplex was sealed due to the lessor’s failure to fulfill these obligations, leading to substantial financial losses for PVR INOX. the company seeks compensation from the lessor for all incurred losses, including the Rs 1.26 crore lease security deposit, Rs 6 lakh CAM security deposit, Rs 10 lakh for movable assets, Rs 2,06,65,166 for movable and immovable assets plus interest, and Rs 1 crore for business losses, reputation, and goodwill. 

After terminating the lease and receiving no response to its demands, PVR INOX filed two petitions under Section 11 of the Arbitration & Conciliation Act, 1996, in the Delhi High Court. 

On July 30, 2024, Justice C. Hari Shankar Appointed an arbitrator to resolve the dispute. PVR INOX was represented by Advocate Sumit Gehlot From Fidelegal Advocates & Solicitors.