Case Analysis: Cars24 Services Pvt. Ltd. vs Cyber Approach Workspace LLP

INTRODUCTION

In the case of Cars24 Services Pvt. Ltd. vs Cyber Approach Workspace Lip, the Hon'ble High Court of Delhi has set forth an important legal principle in answering the question of whether the seat of Arbitration could exercise jurisdiction to appoint an arbitrator even though the lease deed in question vested the power to appoint Sole Arbitrator with another court.

BRIEF FACTS OF THE CASE

In this matter, Cyber Approach Workspace LLP (the respondent) executed a lease deed under which an interest-free refundable security deposit of Rs. 52,80,000/ was paid by Cars24 Services Pvt. Ltd. (the petitioner) for the leased premises. Because of COVID-19, the petitioner invoked the force majeure clause to terminate the lease deed and subsequently claimed the refundable security deposit. The respondent denied any liability toward the petitioner. According to the deed, if any dispute arose between the parties, then it shall be referred to a Sole Arbitrator who shall