RAMESH CHANDER ARORA Vs. KASHMIR SAREE KENDRA

JUDGEMENT

(1.) The present appeal has been filed to assail the order dated 5.10.2005 passed by the learned ADJ, whereby objections filed by the Appellant against the arbitral award dated 9.11.2004 were dismissed.

(2.) The brief factual matrix of the case is as follows. That the Appellant is a readymade garments exporter whereas the Respondent is a fabric supplier. The Appellant entered into a commercial transaction with the Respondent for the supply of 25,000 meters of silk at the rate of Rs. 85/- per meter. The Respondent supplied the goods through three bills to the Appellant. Disputes arose between the parties primarily over the issue of supply of defective goods by the Respondent and non-payment of bills of the goods. I will not go into the details of the dispute for the sake of brevity but focus on the main issue.

(3.) It is the stand of the Appellant that neither there was any arbitration agreement between the parties nor the claim of the Respondent was within limitation, despite that the Arbitrator has allowed the claim of the Appellant and in this manner has mis-conducted the proceedings and therefore, the said proceedings are liable to be set aside. However, the learned ADJ has simply brushed aside the legal issue i.e. there being no arbitration agreement between the parties and the claim filed by the Respondent being beyond limitation despite specific objection taken about it by the Appellants in having filed an application under Section 16 of the Arbitration and Conciliation Act, 1994.