Delhi High Court Refers JW Marriott Licensing Dispute Between Light Lake, Aria Hotels To Arbitration

The Delhi High Court, on 4 November, referred a commercial licensing dispute between Light Lake Enterprises Private Limited and Aria Hotels and Consultancy Services Private Limited, concerning premises at JW Marriott Hotel, Delhi Aerocity, to arbitration.

Justice Manoj Jain appointed former Delhi High Court Judge Justice Chander Shekhar as the sole arbitrator, leaving all questions concerning the parties' claims, objections and the arbitrability of the dispute open for adjudication. The Bench held:

“It is made clear that all the rights and contentions of the parties, including as to the arbitrability of the claim and any other preliminary objections as well as merits of claim or counter claim, if any, are left open for adjudication by the learned Arbitrator.”

The dispute arose from a series of commercial licensing agreements between Light Lake Enterprises and Aria Hotels, which developed the five-star JW Marriott Hotel in Delhi Aerocity.

Under an agreement dated 7 February 2024, Aria Hotels licensed a 2,005 sq. ft. ground-floor commercial space to Light Lake Enterprises for operating a high-energy bar or discotheque. The agreement contained provisions governing the lock-in period, renewal and resolution of disputes through arbitration.

On 31 May 2024, the parties executed another agreement for an additional 200 sq. ft. area on the same floor, which Light Lake Enterprises claimed was being used for kitchen activities. On 1 May 2025, Aria Hotels entered into a third agreement with the second applicant concerning the original 2,005 sq. ft. commercial space.

Aria Hotels terminated the licensing agreement concerning the larger premises on 21 September 2026. The immediate dispute, however, concerned restrictions on access to the 200 sq. ft. kitchen area.

Claiming that both spaces formed a single, functionally integrated commercial unit, Light Lake Enterprises and its co-applicant approached the High Court under Section 9 of the Arbitration and Conciliation Act, 1996, seeking protection against obstruction of access, interference with possession and removal of equipment. They also sought directions concerning registration of the third agreement.

During the proceedings, Aria Hotels acknowledged that the agreements contained arbitration clauses and expressed no objection to referring the dispute to arbitration. It also agreed to allow the applicants continued use of and access to the 200 sq. ft. kitchen area until the arbitrator decided their application for interim protection, while reserving its rights.

Aria Hotels claimed that the applicants owed Rs. 51,69,376 in outstanding dues. Although the applicants disputed the amount, their director, Ashish Kumar, undertook to deposit the sum with the High Court Registry within four weeks, without admitting liability.

The Court directed the Registry to keep the amount in an interest-bearing fixed deposit and release it, along with accrued interest, as directed by the arbitrator. It also allowed Light Lake Enterprises continued access to the kitchen area pending the arbitrator's decision on interim protection.

It appointed Justice Chander Shekhar as sole arbitrator under the aegis of the Delhi International Arbitration Centre (DIAC), and directed that the interim protection petition be treated as an application under Section 17 of the Arbitration and Conciliation Act, 1996, for expeditious adjudication.

Accordingly, the High Court disposed of the petition.

Appearances for petitioners (Light Lake Enterprises Pvt. Ltd. & Anr.): Advocates Tanmay Mehta, Dinesh Sharma, Ritika, Abhishek Kandwal and Ishaan Ojha.

Appearances for respondent (Aria Hotels and Consultancy Services Pvt. Ltd.): Advocates Vikas Goel, Ritesh Sharma, Sidharth Agarwal, Vivek Gupta and Anisha Dahiya.