leave & license agreement with government but no possession given

I had entered into a leave and license agreement with a government local authority for property of the govt. for conducting business. The local authority did not allow me to use the property for a few months and continued charging a rent for those months. I objected to the making the rent payment for such months and the local authority took forcible possession of the property and damaged my goods. I want to claim 1.5cr loss against the authority. Property is located at Vashi. There is arbitration clause in the agreement. Can I approach a court instead of going in arbitration? Thanks alot