RASHTRIYA ISPAT NIGAM LIMITED Vs. VERMA TRANSPORT COMPANY

JUDGEMENT

(1.) Leave granted.

(2.) Interpretation and application of Section 8 of the Arbitration and Conciliation Act, 1996 (for short, the 1996 Act) is in question in these appeals which arise out of a judgment and order dated 10.02.2003 passed by a learned Single Judge of the High Court of Punjab and Haryana, dismissing the Civil Revision Application filed by the Appellants herein from a judgment and order dated 03.10.2002 passed by the Civil Judge (Junior Division), Jalandhar and order dated 15.09.2004 refusing to review the said order. FACTS :

(3.) The Appellant No.1 is a Public Sector Undertaking. It is engaged, inter alia, in the business of manufacturing and marketing of iron and steel products. The Respondent is a partnership firm. It is engaged in the business of consignment agents. It has its office at Jalandhar. A contract was entered into by and between the parties hereto in regard to the handling and storage of iron and steel materials of the Appellant at Ludhiana. The Appellants contend that one Shri Anil Verma, Partner of the Respondent-Firm had constituted various firms and companies and obtained several consignment agency contracts from the Appellant pertaining to Delhi, Faridabad, Chandigarh and Ludhiana etc. who conspired with certain officials of the Appellants and obtained payments @ Rs.140/- per M.T. in place of Rs.36/- per M.T. on a false plea that the Transport Union at Bahadurgarh did not permit transportation of goods without levy of a fee of Rs.100/- per M.T. on transportation of such goods. An investigation was conducted by the Central Bureau of Investigation and a criminal case was initiated against Shri Anil Verma and the concerned officials of the Appellants. Allegedly, with the object of presenting a clean image to the Appellants and with a view to avoid termination of all the contracts by them, a plea was put forth that Shri Anil Verma had resigned from the partnership firm as also from his other firms/companies. According to the Appellants, the said Shri Anil Verma was replaced by his family members as a partner of the said firm but he continued to be in complete control over the firms/companies. The contract of the Respondent was terminated by the Appellants on 23.05.2002. On the same day, a show cause notice was also issued to Shri Anil Verma as to why he and his firms/companies should not be blacklisted.