Authority: High Court of Sikkim, Gangtok
Order Date: 29 July 2026
Case Overview
- Parties: Appellant – M/s Sign Sikkim Private Limited; Respondent – Commerce and Industry Department, State of Sikkim.
- Proceedings: Appeal (Arb.A. No.01 of 2026) filed under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim protection against dispossession of leased premises.
- Background: The Commercial Court, Pakyong, Sikkim, in Commercial (Arbitration) Case No.01 of 2026 dated 16 April 2026, dismissed the appellant’s application for interim relief. Following that dismissal, the leased premises were taken over by the State‑Respondent.
- Counsel: For the appellant – Mr. Yam Kumar Subba, Advocate. For the respondent – Mr. Aarohi Bhalla, Additional Advocate General, assisted by Mr. Thinlay Dorjee Bhutia, Government Advocate, and Ms. Tanushree Thapa, Legal Consultant.
- Key Claim: The appellant asserted that it had invested more than ₹3,00,00,000 (three crore rupees) in improving the leased premises.
- Court’s Observation: The improvement claim cannot be entertained at this interlocutory stage; it must be raised in the substantive arbitration proceedings for the arbitrator to determine entitlement.
Final Outcome
- The High Court, per the order of Chief Justice Hon'ble Mr. Justice A. Muhamed Mustaque and Justice Bhaskar Raj Pradhan, dismissed Arbitration Appeal No. 01 of 2026.
- The court granted liberty to the appellant to approach the Commercial Court to appoint an Advocate Commissioner for assessing the value of any improvements, if required.
Topics: Arbitration, Lease Dispute, Judicial Order