Here's a breakdown of a recent court decision involving a lease dispute in Puducherry. The case is about a lease agreement and using arbitration to solve disagreements. Here's what happened.
On December 12, 2018, Mr. P. Venkadachalam and Mr. V. Balasubramaniam (the people being sued) signed a lease agreement with MKB Life Styles (the company suing), represented by Mr. K. Senthilkumar. The lease was for a property in Puducherry for nine years. Problems started when Mr. Venkadachalam and Mr. Balasubramaniam allegedly disrupted MKB Life Styles' peaceful use of the property.
MKB Life Styles went to court to stop Mr. Venkadachalam and Mr. Balasubramaniam from interfering with their use of the property. The defendants responded by asking the court to refer the dispute to arbitration, as stated in the lease agreement.
On July 18, 2022, the Trial Court in Puducherry agreed that the lease had a valid arbitration clause and sent the case to arbitration. The court also ordered temporary measures to ensure Mr. Venkadachalam and Mr. Balasubramaniam did not disrupt important services like electricity, elevators, and parking, which are important for MKB Life Styles' business.
"In the result, this petition is allowed by referring the matter to arbitration...the petitioners/defendants should not interrupt the power supply, way, lift and parking facilities..." - Trial Court Order
Mr. Venkadachalam and Mr. Balasubramaniam were not happy with this decision and filed a complaint with the High Court. They argued that the Trial Court should not have given temporary orders that favored MKB Life Styles. MKB Life Styles did not show up to argue against this.
On January 23, 2026, Justice R. Sakthivel of the Madras High Court looked over the case. The court noticed that Mr. Venkadachalam and Mr. Balasubramaniam had not started arbitration but instead tried to remove MKB Life Styles under the Rent Control Act. The High Court decided that the Trial Court's temporary order would stay until March 23, 2026, giving both parties time to seek other legal options if needed.
"The Defendants are restrained from entering into peaceful possession and enjoyment of the Suit Property...till March 23, 2026." - High Court Order
The court decided that the dispute should be resolved through arbitration, as mentioned in the lease agreement. Until then, Mr. Venkadachalam and Mr. Balasubramaniam must not interfere with MKB Life Styles' use of the property or its services. Both sides can still explore other legal options if they choose.
