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    Fine Arts Communications India (P) Ltd. v. Commissioner

    PRAYER in O.A. No. 20 of 2022: This Application is filed under XIV Rule 8 of Original Side Rules read with Section 9 of the Arbitration and Conciliation Act, 1996 praying to grant an order of injunction restraining the Respondents herein and their men, agents and subordinates from in any manner disturbing the peaceful continuance of the advertisement business of the Applicant subject matter of Concession Agreements dated 31.12.2015 for construction and maintenance of bus shelters in respect of Packages 4, 5 and 6;

    PRAYER in O.A. No. 21 of 2022: This Application is filed under XIV Rule 8 of Original Side Rules read with Section 9 of the Arbitration and Conciliation Act, 1996 praying to grant an order of injunction restraining the Respondents herein and their men, agents and subordinates from in any manner disturbing the peaceful continuance of the advertisement business of the Applicant subject matter of Concession Agreements dated 31.12.2015 for construction and maintenance of bus shelters in respect of Packages 7 and 8; and

    PRAYER in O.A. No. 22 of 2022: This Application is filed under XIV Rule 8 of Original Side Rules read with Section 9 of the Arbitration and Conciliation Act, 1996 praying to grant an order of injunction restraining the Respondents herein and their men, agents and subordinates from in any manner disturbing the peaceful continuance of the advertisement business of the Applicant subject matter of Concession Agreements dated 31.12.2015 for construction and maintenance of bus shelters in respect of Packages 1, 2 and 3.

    The Order of the Court was delivered by

    Senthilkumar Ramamoorthy, J.:— These applications arise out of a dispute relating to the amounts due and payable by the respective applicant to the Corporation of Chennai under Concession Agreements entered into on BOT basis between the respective applicant and the Corporation of Chennai. The Corporation of Chennai issued orders on 24.12.2021 making claims towards concession fees dues and bus shelter licence fee dues. The claim towards bus shelter licence fees is refuted on the ground that such licence fee is not payable under the relevant Concession Agreement. As regards the concession fee dues, the contention of the respective applicant is that such fees are payable from and out of the revenue realized by displaying advertisements on the bus shelters and that monies could not be realized therefrom on account of the COVID-19 pandemic and the lock downs imposed in the wake thereof. In these facts and circumstances, an interim injunction is prayed for to restrain the Corporation of Chennai from removing the advertising materials displayed in these bus shelters or in any way disturbing the respective applicant from carrying on such advertising business at such bus shelters.

    2. Upon considering the submissions and on examining the materials, it is necessary to balance the equities. The Corporation of Chennai has demanded substantial amounts towards alleged unpaid dues. However, the Concession Agreement does not appear to have been terminated as on date and the said Agreement envisages the earning of advertising revenue by the respective applicant. Therefore, a prima facie case is made out to restrain the Corporation of Chennai from removing the advertising materials from the relevant bus shelters subject to the condition that the respective applicant shall pay 25% of the amount demanded by the Corporation of Chennai in the respective demand notice within a period of two weeks from the date of receipt of a copy of this order.

    3. Ms. Karthika Ashok, learned Standing Counsel accepts notice for the Corporation of Chennai and seeks time to file a counter.

    4. List on 03.02.2022.

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    Fine Arts Communications India (P) Ltd. v. Commissioner
    (Jan 20, 2022)