Court finds RWITC guilty of breach of catering contract

HYDERABAD: Arbitral tribunal found fault with the Royal Western India Turf Club Ltd (RWITC), the club authorized to organize horse races in Mumbai
and Pune for breach of agreement with the caterers of the Pune Turf Club.

The tribunal, appointed by the Bombay High Court, chaired by Judge Mohit S. Shah, ordered RWITC to pay a sum of Rs 82,77,000 to the company named “18 Degrees North Ltd, Pune” which manifested in 2015. to manage the restaurant specializing in the Victoria room and the license room.

The contract was terminated in 2016, because even after a year of waiting, the Turf Club was unable to obtain the clearances and licenses to operate the two.

Believing that having only catering services was economically ill-advised, representatives of 18 Degrees North, Smitha Chinoy and Ratan Dinshaw Chinoy terminated the agreement.

This led the Turf Club to claim around Rs 1.15 crore from the catering company for overhead costs such as electricity costs, water bill, staff salaries, fees, among other clauses.

At a counter, the catering company claimed Rs 1.93 crore, which included deposits
security deposits and down payments.

She also claimed 16% annual interest on this amount as of 2016.

Following the litigation, the Bombay High Court referred the case to the Arbitral Tribunal.

After hearing the two assertions, Judge Shah issued an award on December 22, in which he dismissed the claims of Royal Western India Turf Club Ltd and partially cleared those of 18 Degrees North by allowing up to Rs 82.77 lakh with compound interest of 10%. from the date of grant until payment.
Meanwhile, the Turf Club was also ordered to pay Rs 10 lakh to the company
as costs of arbitral proceedings.

The award amount must be paid within three months from the date the award was awarded, he said.

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