CANARA BANK Vs. M.D. OVERSEAS

JUDGEMENT

(1.) THIS objection petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenges the Award dated 14.9.02 passed by the sole Arbitrator. The Award decides the disputes which arose between the petitioner/objector/bank and the respondent arose during the pendency of contractual relations in which the petitioner acted as an agent for the respondent for importing of gold. The dispute centres around the rate of the handling charges which the petitioner was entitled to receive from the respondent, more specifically, the dispute is with regard to reduction of the handling charges, whether on account of turn over based incentives given by the petitioner or in any case on account of a agreement to grant of incentive for maintaining business relations.

(2.) MR . Narula, Learned Senior Counsel for the petitioner, has limited his challenge to the Award on two counts. The first count pertains to the claim of incentive of Rs. 73,44,996/- for the period from 1.12.1997 to 18.2.1998 which according to Mr. Narula ought not to have been awarded in favour of the respondent. The second objection pertains to the grant of interest @ 18% per annum granted by the Award which rate according to the counsel was excessive.

(3.) THE Arbitrator has dealt with this issue and given his conclusions and findings in para 15 of the Award which reads as under: