Delhi High Court appoints Justice Rajiv Shakdher as arbitrator in dispute between Playboy bar and Grand Hotel

The Delhi High Court has appointed its former judge, Justice Rajiv Shakdher, as the sole arbitrator to resolve a commercial dispute over Playboy Restro Bar and Lounge in The Grand Hotel at Vasant Kunj [Unison Hotels Pvt Ltd v Night Beat Hospitality Pvt Ltd]..In an order passed on October 9, Justice Purushaindra Kumar Kaurav said that Unison Hotels Private Limited, which operates The Grand Hotel, and Night Beat Hospitality, the licensee of the Playboy Bar, may agitate their claims before Justice Shakdher. “The arbitration would take place under the aegis of the Delhi International Arbitration Centre (DIAC) and would abide by its rules and regulations. The learned Sole Arbitrator shall be entitled to fees as per the Schedule of Fees maintained by the DIAC… Moreover, looking at the nature of the grievance and the urgency involved herein, an expeditious adjudication of these applications is expected. Both parties undertake to immediately approach the Sole Arbitrator for fixing a date of hearing, during the course of next week as per the convenience of the learned Sole Arbitrator,” the Court said. .Justice Kaurav passed the order while hearing two cross-petitions filed under Section 9 of the Arbitration and Conciliation Act, 1996, in which both companies sought interim protection over the same premises. Unison Hotels sought to restrain Night Beat Hospitality from entering or interfering with the property while Night Beat challenged the termination of its licence and demanded restoration of essential services such as electricity, water and gas to continue operations.The dispute stemmed from a licensing agreement signed on June 2, 2022 and registered later that year. Unison Hotels argued that the three-year lock-in period ended on June 14, 2025 and that Night Beat had no legal right to remain in possession of the lounge. It further alleged that the agreement allowed for termination in cases of nuisance, illegality or conduct harmful to the hotel’s reputation. In contrast, Night Beat maintained that the licence was extendable and that it had not breached any conditions..Senior advocate Anil K Airi with advocates Gaurav Bahl, Vishal Tyagi, Harsh Gautam and Sadhana Sharma appeared for Unison Hotels. Advocate Arun Sharma represented Night Beat Hospitality..[Read Order]