NATIONAL COOPERATIVE CONSUMERS FEDERATION OF INDIA LTD. Vs. . KERALA STATE COOPERATIVE CONSUMERS FEDERATION LTD. & ANR.

JUDGEMENT

(1.) The National Co-operative Consumers' Federation of India Ltd. ('NCCF') has, in this petition under Section 34 of the Arbitration and Conciliation Act, 1996 ('Act') challenged the impugned Award dated 12th January 2006 rendered by the sole Arbitrator (Respondent No. 2) to the extent that the claim of the Petitioner against the Kerala State Cooperative Consumers Federation Ltd. Respondent No. 1 ('KSCCF') pertaining to the period from 1981 to 1985 was rejected as being barred by limitation.The Petitioner NCCF is a national level Consumers Cooperative Society registered under the Multi-State Co-operative Societies Act, 2002 ('MSCS Act') dealing in the sale and purchase of the consumer goods like groceries, general merchandise, controlled doth and other commodities. Respondent No. 1 is admittedly a member of the Petitioner. According to the Petitioner, it sold several items of groceries, general merchandise, controlled clothes and other commodities to KSCCF and was maintaining its accounts in the regular course of its business. A legal notice was issued on 10th January 2001 by the Petitioner to KSCFF claiming some outstanding amounts. Along with its letters dated 27th August 2001 and 12th September 2001 the Petitioner enclosed a summarized statement showing the outstanding as on 31st March 2001. In its reply dated 17th November 2001, KSCCF informed the Petitioner that as per its accounts the balance as on 31st March 1999 was Rs. 9.89 lakhs. After adjusting the sum of Rs. 1 lakh which was paid on 23rd June 1999, the balance got reduced to Rs. 8.89 lakhs. The letter referred to a reconciliation carried out as on 30th June 1988 in terms of which the difference between the figures of NCCF and KSCCF was in the sum of Rs. 11,41,996.50. However, as per the NCCF the difference was to the tune of Rs. 20.29 lakhs. It was stated in the said letter thereafter as under:-

(2.) In response to the above letter the Petitioner on 24th January 2002 requested Respondent No. 1 to settle the dues to the extent of Rs. 8.89 lakhs which was accepted by it pending reconciliation of accounts of disputed entries concerning free delivery of controlled doth and other items. The disputes between the parties were thereafter referred to sole arbitration.

(3.) It appears that a preliminary objection was raised by KSCCF as to the jurisdiction of the sole Arbitrator to adjudicate the disputes.By an order dated 4th March 2005 the learned Arbitrator negatived the said objection and held that he had jurisdiction to hear and decide the dispute between the Petitioner and Respondent No. 1. The Petitioner filed a claim in the sum of Rs. 28,01,279.13 plus interest due thereon @ 18.25% per annum against Respondent No. 1 before the learned Arbitrator. Inter alia, it was contended by Respondent No. 1 that the claim of the Petitioner pertained to supplies made during the period from 1981 to 1985 and therefore, the said claim was barred by limitation.