C S AHLUWALIA Vs. MOHD SALIM KHATRI

JUDGEMENT

(1.) The challenge by means of this First Appeal under Section 37 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as "the Act") is to the impugned judgment of the Court below dated 8.3.2006, and by which judgment the Court below dismissed the objections of the appellant/objector filed under Section 34 of the Act.

(2.) The facts of the case are that the appellant as an owner of the shop situated at ground floor of E-3, Lajpat Nagar-II, New Delhi-24 entered into a franchise agreement dated 13.8.2001 with the respondents whereby respondents were allowed to sell the leather products under the name of "Aflatoon" and "4 Wheel". The appellant received various amounts under the franchise agreement totalling to a sum of Rs. 3,16,167/-. The respondents also spent a sum of Rs. 50,000/- towards renovation of the shop. The appellant in spite of having received the amounts did not allow the respondents to operate the franchise agreement and sell the products from the shop as a result of which respondents initiated arbitration proceedings for recovery of the amounts paid in addition to the amount of Rs. 50,000/- spent towards renovation.

(3.) The Arbitrator issued notices to the appellant to appear before him and which notices were sent by registered post AD, by courier as well by service of posting at the shop premises and where they were received. Since the appellant did not appear, he was proceeded ex-parte and an ex-parte Award was passed.