The single judge bench of Justice Jaishree Thakur of the Punjab and Haryana High Court in the case of M/S Guru Nanak Rice and General Mills and Anr Vs State of Punjab and Ors held that if there is an arbitration clause in the policy, then all the disputes arising between the procurement agency and the petitioner, be it legal or otherwise, should be referred to an arbitrator.
BRIEF FACTS
The factual matrix of the case is that in order to mill and supply the custom milled rice (CMR) for the Kharif marketing season 2012–2013, the petitioners had been given paddy. The Miller was required by the Custom Milling Policy to deliver CMR in the Central Pool of FCI within the time frames specified in the policy and the additional time granted by the Government of India/FCI. However, the petitioners were penalized for the CMR's delayed delivery even though they were successful in delivering it within the extended time frame that FCI had permitted. The petitioners in this case have requested a return of the money that was charged to them as a result of the delayed delivery of CMR for the crop year 2012–2013.
The learned counsel appearing on behalf of the respondent contended that this writ petition is not maintainable as clause 19 of the policy would prescribe for arbitration of any dispute between the procurement agency and the miller and therefore, the petitioners herein ought to invoke the arbitration clause and appointment of an Arbitrator. The learned counsel appearing on behalf of the respondent relied on the judgment titled, ‘Satnam Agro Industries versus Union of India and Others.’
COURT’S OBSERVATION
The hon’ble court held that there is an arbitration clause, it would be appropriate that all disputes arising between the procurement agency and the Miller-petitioner, be it legal or otherwise, should be referred to the Arbitrator. The court also directed the petitioners to appear before the arbitrators, to be appointed by the managing director.
Case Name- M/S Guru Nanak Rice and General Mills and Anr Vs State of Punjab and Ors
Citation- CWP-13767-2021
Date- 10.08.2022
Corum- Justice Jaishree Thakur
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