DABUR INDIA LIMITED Vs. BSI LIMITED

JUDGEMENT

(1.) The petitioner has filed an application under Section 8 read with Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter called "the Act" for short). The applicant company claims its registered office at 8/3, Asaf Ali Road, New Delhi. The applicant company placed an order for supply of 4,500 MT of Indian Toasted Yellow Soyabean Extraction with the respondent vide Confirmation Note No. SS/1402/96 dated 16.9.1996 through M/s. S.S. Mercantile Export Intermediates & Produce Brokers and the confirmation note dated 16th September, 1996 was signed and executed by both the parties. The respondent was to despatch the material to the destination to be notified by the applicant by Railway rake. The applicant was to make payment equivalent to 90% of the invoice value of the first consignment. This agreement clause provided that in case of any dispute, arbitration would be last resort to both the parties, if both the parties are unable to resolve mutually. The said confirmation note is Annexure A-l. Accordingly, certain supplies were made but the respondent failed to supply the third consignment in terms of the agreement which was to be despatched by the respondent for Attari between 15th December, 1996 to 15th January, 1997. The respondent was supposed to despatch the rake up to 15th February, 1997 whichever allotted first. The Railway Authorities had allotted the rake in the last week of March, 1997 which was actually surrendered by the respondent and the respondent had already diverted the material to be supplied by the consignment in favour of the petitioner. Numerous disputes mentioned in para 7 of the petition which led the petitioner to file this petition arose in between the parties.

(2.) The main objection of the respondent relates to the territorial jurisdiction.

(3.) It may be worthwhile to reproduce para 23 of the petition in this regard. This reads as under: