SANJAY AHUJA Vs. GIVO LIMITED

JUDGEMENT

(1.) The facts leading to these petitions are that on 3rd March 2006 an Agreement was entered into between Givo Ltd. having its registered office at Gurgaon, Haryana and Mr. Sanjay Ahuja, sole proprietor of M/s. Ahuja Apparels, having its office at Karol Bagh and New Delhi. Givo Ltd. was a manufacturer of garments being sold under the brand name of 'Givo'. In terms of the said agreement Givo Ltd. was to supply to Ahuja Apparels garments manufactured out of the raw material supplied by Ahuja Apparels. Under the Agreement Ahuja Apparels was appointed as a distributor of the products supplied by Givo Ltd. for which Ahuja Apparels agreed to pay royalty to Givo Ltd. @ 6% of the maximum retail price of each of the products supplied by Givo Ltd.

(2.) In terms of Clause 23 of the Agreement the parties agreed that if they were unable to resolve their dispute or differences 'then such dispute or difference shall be referred for Sole Arbitration to Mr. Ajay Srivastava in accordance with the Indian Arbitration and Conciliation Act, 1996.' The venue of the arbitration was New Delhi.

(3.) With disputes having arisen between the parties arising from the said agreement, Mr. Sanjay Ahuja on 22nd September 2007 filed a petition under Section 11 as well as Section 9 of the Arbitration and Conciliation Act, 1996 ('Act') in this Court. The petition under Section 11 of the Act was registered as Arbitration Application No. 421 of 2007 and the petition under Section 9 of the Act was registered as O.M.P. No. 521 of 2007. In Arbitration Application No. 421 of 2007, under Section 11 of the Act, a detailed order was passed by this Court on 25th September 2007 appointing Mr. Ajay Srivastava as the sole Arbitrator to adjudicate the disputes between the parties. Even at that stage Mr. Sanjay Ahuja expressed reservations about Mr. Ajay Srivastava conducting the arbitration 'inasmuch as he was of the opinion that there were circumstances which are likely to give rise to justifiable doubts as to his independence or impartiality'. Dealing with the said submissions, this Court observed in the order dated 25th September 2007 as under: