Issues Falling Within The Exclusive Jurisdiction Of Estate Officer Under The Public Premises Act, Are Non-Arbitrable: Delhi High Court

The Delhi High Court has ruled that the disputes relating to determination of a lease or the arrears of rent payable in respect of public premises, are questions statutorily mandated to be determined exclusively by the Estate Officer under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (PP Act). Thus, the same are non-arbitrable.
The bench of Justice Yashwant Varma was considering a petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 (A&C Act) seeking reference of the dispute concerning the computation of ground rent by the Delhi Development Authority (DDA) with respect to the plot leased to the petitioner. The petitioner further sought adjudication of the validity of determination of lease by the DDA.
The court observed that the PP Act was enacted for the purpose of setting up a speedy machinery for eviction of persons found to be in unauthorized occupation of public premises. Further, Section 15 of the PP Act ousts the jurisdiction of courts in respect of eviction of persons from public premises and in relation to other connected aspects.
The court remarked that though the Estate Officer under the PP Act is not entitled to go into questions of competing ownership, all other issues of determination which relate to the occupation of public premises and questions incidental to it, would clearly fall within the exclusive jurisdiction of the Estate Officer.
The bench thus concluded that the disputes raised by the petitioner were non-arbitrable and therefore, dismissed the petition.
The petitioner, S.S. Con-Build Pvt Ltd, applied for conversion of the plot leased to it by the DDA, from leasehold to a freehold property. The same was not allowed by the DDA on the ground that the petitioner had failed to pay arrears of ground rent. After the petitioner failed to clear its outstanding dues, its lease was cancelled by the DDA.