Pune Race Course: Tandoori Knights Won Rs 82.77 Lakh Claim Arbitration Against Royal Western India Turf Club
Pune/Mumbai, 31st December 2021: A long-pending legal dispute over the claims by Eighteen Degrees North, which runs Tandoori Knights, a known name in restaurants rendering catering services for Rs 82.77 lakh payment by Royal Western India Turf Club (RWITC), has finally come to an end.
The arbitral award has been passed in favour of Smita Chinoy who is one of the partners in Eighteen Degrees North.
Advocate Aashutosh Srivastava who represented Chinoy in the arbitration proceedings said “I welcome the arbitration award passed by the learned arbitrator Justice Mohit S Shah in favour of my client after a detailed study and trial considering all the important aspects of the case and I would only say that the justice is rightly served in the matter”.
RWITC holds a Turf Club House at Pune and a mini-Club at Mumbai for its members and their guests/ visitors. On May 5, 2015, it had floated tenders for providing services purely on conducting basis including catering services at the premises of the Turf Club House, Pune, which included the Permit room and proposed ‘Specialty Restaurant’ at Victoria Room on the First Floor at Turf Club House, Pune. Eighteen Degrees North was the
the only party which submitted its offer and was awarded the contract by RWITC on 22nd June 2015.
The services began on 1st July 2015 as per the arrangement. However, RTWITC terminated the contract on 20th April 2016.
The RWITC claimed that the company failed to get the necessary licenses for the speciality restaurant and had discontinued the arrangement of running the permit room and therefore, it was not economically viable for the Turf Club
to continue the catering services.
Both sides had filed claims and counterclaims before the tribunal. RWITC sought Rs 1.15 crore while Eighteen Degrees North filed a counterclaim for Rs 1.93 crore.
Notices were sent in abundance and matters were filed in various Courts. Ultimately, the Eighteen Degrees North moved to the National Company Law Tribunal (NCLT) Mumbai Bench through their legal counsel Advocate Srivastava. Upon moving to the NCLT, RWITC filed their reply for the same before the NCLT. Despite the ongoing case before the NCLT, RWITC moved to the High Court of Bombay to appoint an arbitrator to decide upon the disputes and differences between the parties. The High Court held that the proceedings before the NCLT initiated by Eighteen Degrees North against RWITC will be unaffected by the order of the High Court of Bombay and by these arbitral proceedings, the contentions between the parties shall be decided in accordance with law. Therefore, Eighteen Degrees North agreed to move forward with the arbitration proceedings and nominated to appoint a sole arbitrator.
The Sole Arbitrator Justice Mohit Shah (retd) passed an award on 22.12.2021 in favour of Eighteen Degrees North striking down the RWITC’s claim.
The Award:
- RWITC to pay Rs 82,77,000.
- RWITC to pay simple interest at 9% per annum on the amount of Rs 26,23,244 for the period from 01.08.2016 till the date of this Award.
- RWITC has to pay compound interest @10% p.a. with quarterly rests on the total amount of Rs 82,77,000 from the date of this Award till payment/realization.
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