Quick Summary: The Delhi High Court has chosen a mediator to settle a disagreement between Omaxe New Chandigarh Developers and Atharva Hotel Superfluities over a rental agreement for a hotel project in Mohali, Punjab. Omaxe New Chandigarh Developers wanted mediation due to claimed violations by Atharva Hotel Superfluities.
The case is about a rental agreement dated November 15, 2022, between Omaxe New Chandigarh Developers and Atharva Hotel Superfluities. Omaxe New Chandigarh Developers was creating a shopping complex called "Beacon Street" in Mohali, Punjab, and rented a part to Atharva Hotel Superfluities for hotel business. Omaxe New Chandigarh Developers paid an advance of Rs. 1,94,70,000 to Atharva Hotel Superfluities, but claimed non-performance led them to ask for their money back.
Omaxe New Chandigarh Developers said Atharva Hotel Superfluities returned only Rs. 50,00,000, leaving Rs. 1,44,70,000 unpaid. On August 22, 2025, Omaxe New Chandigarh Developers sent a notice asking for the remaining refund and damages, leading to the start of mediation under the Arbitration and Conciliation Act, 1996.
"Due to the failure of obligations by the respondent, the petitioner asked for a refund of the advance amount..."
Atharva Hotel Superfluities disagreed with the mediation, saying that Omaxe New Chandigarh Developers did not follow the rental agreement's process for settling disputes, which required talking things out and trying to agree before mediation. They also said the request was too early and mentioned a related case in Lucknow involving similar issues.
Justice Mini Pushkarna noted that attempts at negotiation had been made and that the mediation clause was valid. The court decided that more negotiation would be pointless, especially given similar ongoing disputes between the parties in other projects.
The court appointed Justice (Retd.) Shalinder Kaur as the only mediator and directed that the mediation be conducted under the Delhi International Arbitration Centre's rules.
"The mediation proceedings shall be held under the guidance and rules of DIAC, Delhi High Court..."
The court's decision emphasizes the importance of following mediation clauses in agreements and clarifies that pre-mediation negotiation processes, while encouraged, are not required when considered pointless. This case shows how the legal system helps solve business disputes through mediation, offering a structured way for parties to settle their differences outside of regular court proceedings.
