Punjab State Civil Supplies ... vs Ballarpur Industries Ltd.
1987 Latest Caselaw 213 Del

JUDGMENT

N.C. Kochhar, J.

(1) Punjab State Civil Supplies Corporation Limited (the petitioner) has filed this petition under section 8 of the Arbitration Act, 1940 read with section 151 of the Code of Civil Procedure staling that an agreement had been entered into between the petitioner and M/s. Ballarpur Industries Limited (the respondent) whereby the respondent was to arrange supply 50,000 metric tonnes, with plus minus 10%, of ordinary Grey Portland Cement at the rate of Us 8 40 (forty) per metric tonne F.O.B. stowed from any of the sea port in Taiwan and that under the terms of the agreement the demurrage charge, occurring for any reason, were to be paid by the respondent. It is stated that the disputes have arisen in regard to demurrage charges of Us $ 31, 708.34 in respect of Vessel 'M.V. FELIX-S' in as much as the petitioner has claimed the said amount but the respondent earlier agreed to pay a sum of Us $ 15,000 in full and final settlement but later on denied its liability to pay any amount. It is stated that clause 16 of the said agreement is an arbitration clause according to which in the event of disputes arising between the parties, the same have to settled by arbitration at Delhi (India) in accordance with the rules of Arbitration Act. It has thus been prayed that the arbitration agreement between the parties be ordered to be filed in court and an arbitrator be appointed to decided the disputes between the parties.

(2) Notice of the petition was issued to the respondent who originally contested the petetion. However, on 27th March 1987, the learned counsel for the parties made joint statement admitting that there is an arbitration agreement between them. They stated that they could not agree to any name and prayed that the court may appoint an arbitrator to decide the disputes between them and further that they would file their claim/counter claim before the arbitrator and would also pay the fee of the arbitrator in equal shares.

(3) In view of the position mentioned above, I allow the petition and direct that the arbitration agreement between the parties be filed in court. I appoint Dr. Bakhashish singh, Advocate, former Government arbitrator and Additional Legal Advisor to the Government of India, as the arbitrator to decide the disputes arising out of the agreement dated 31st January 1983 arrived at between the parties. The Parties shall file their claim/counter claim, arising out of the said agreement, before the arbitrator who shall give his award within a period of four months from the date of his entering upon the reference or within such time which might be extended with the consent of the parties or under the orders of the court. The fee of the arbitrator is tentatively fixed at Rs. 10,000.00 to be paid by the parties in equal shares.

(4) A copy of this order be sent to the arbitrator.

(5) Suit no. 1075-A of 1986 stands disposed of accordingly.