BADRI SINGH VINIMAY PRIVATE LIMITED Vs. MMTC LIMITED

JUDGEMENT

(1.) By way of this petition under Section 34 of the Arbitration and Conciliation Act, 1996 [hereinafter referred to as "the Act"], the petitioner seeks setting aside of an award dated 02.12.2014 passed by a sole arbitrator. By the impugned award, the respondent herein was awarded a sum of Rs. 1,12,27,431/- alongwith interest and costs of the arbitration proceedings.

(2.) The disputes between the parties arise out of a tender floated by the respondent for sale of 1500 metric tonnes ("MT") of imported lentils (toor lemon - Myanmar origin). The petitioner's bid for purchase of 250 MT of the goods @ Rs. 42,810/- per MT was accepted. The respondent contended that the petitioner had failed to lift the goods, as a result of which it was compelled to sell the material to third parties at the risk and cost of the petitioner.

(3.) In terms of the agreement between the parties, the respondent sought to invoke arbitration in accordance with the Rules of the Indian Council of Arbitration (hereinafter "ICA"). The respondent's claims in the arbitration proceedings were for the loss allegedly incurred in the risk sale.