BARON INTERNATIONAL LTD Vs. STARTRON VIDEO P LTD

JUDGEMENT

(1.) OMP 124/2000 has been filed under Section 34 of Arbitration and Conciliation Act, 1996 (hereinafter referred to as "Act, 1996") challenging the arbitral Award dated 29th March, 2000 passed by Mr. Jagjit Singh, Sole Arbitrator.

(2.) The facts of the present case are that on 5th May, 1994 petitioner- objector and respondent-claimant entered into an Agreement whereby respondent-claimant was to assemble TV sets for petitioner-objector. All expenses for components/parts and sales tax as well as excise were to be borne by petitioner-objector. By virtue of the said Agreement, respondent-claimant was to be paid assembling charges at the rate of Rs. 175 per set. Petitioner-objector was to purchase a minimum of 1300 units per month from respondent-claimant, failing which petitioner-objector was to reimburse respondent-claimant at the rate of Rs. 175/- per set for number of units below 1300 per month.

(3.) However, as subsequently disputes arose between the parties, respondent-claimant on 7th July, 1998 invoked the arbitration clause being Clause 11 of the Agreement. It is pertinent to mention that the said arbitration clause provided for a named arbitrator, Mr. Jagjit Singh who was a member of the same trade.