GRASIM INDUSTRIES LTD Vs. AGARWAL STEEL

JUDGEMENT

(1.) Heard learned counsel for the parties.

(2.) This appeal by special leave has been filed against the judgment and order dated 14th May, of the High Court of Judicature at Madhya Pradesh at Jabalpur.

(3.) The facts in detail have been set out in the impugned judgment and hence we are not repeating the same here. Briefly stated the facts are that the appellant herein entered into an agreement with the respondent and appointed the appellant as a principal dealer for sale of its cement 'Vikram Premium Brand'. On 21.3.1997, the respondent became the consignment agent of the appellant company and in this behalf an agreement dated 1.5.1997 was signed between the parties. Disputes and differences arose between the parties under the said agreement dated 1.5.1997 and the same were referred to an arbitrator. A copy of the arbitration award dated 6.8.2000 is annexed as Annexure-P/10 to this appeal. In the award the arbitrator has rejected the plea of the claimant-respondent that the signature on Ex.D-8 dated 21.10.1997 were only in lieu of a receipt. The case of the appellant was that the document Ex.D-8 was a joint statement of account. The arbitrator held that the signatures on Ex. D-8, joint statement of account, were made by the parties. However, he held that the signature on behalf of the claimant-respondent was made under a mistake and hence the same was not binding. Accordingly, the arbitrator re-examined each head of account and ultimately held the appellant liable to pay to the respondent a sum of Rs. 49.90 lakhs alongwith interest. Objections under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter for short 'the Act') were filed by the respondent before the IXth Addl. District Judge, Jabalpur. By his order dated 25.6.2001, the learned Addl. District Judge held that the appellant was entitled to receive a sum of Rs. 62,000/- alongwith interest @ 18%. The said order of the learned Addl. District Judge was put in challenge before the High Court under Section 37 of the Act.