In Brief
Brij Raj Oberoi leased a hotel from the State of Sikkim for 24 years with a renewal clause requiring the lessor to accept or reject the lessee's renewal terms within a specified timeframe, with disputes over rent or period to be arbitrated. When the lessee timely offered renewal terms, the State rejected the offer citing a new policy. The Supreme Court held that the arbitration clause covers disputes arising from non-renewal itself, not just disputes over quantum and period post-acceptance. The court reversed the High Court's dismissal and appointed an arbitrator, holding that policy decisions cannot override contractual renewal and arbitration provisions.
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