PRIKNIT RETAILS LTD Vs. ANEJA AGENCIES

JUDGEMENT

(1.) Petitioner M/s. Prinknit Retails Ltd., who is a manufacturer of readymade garments, filed the petition under Section 14(2) of the Arbitration and Conciliation Act, 1996 seeking quashing of order dated 24 th March, 2012, declaration of termination of the mandate of the Delhi Hindustani Mercantile Association to act as arbitrators.

(2.) In short, the case of the petitioner is that the petitioner company received a notice 10 th May, 2011 from Delhi Hindustani Mercantile Association (in short DHMA) stating that the respondent firm had some claims against the petitioner company. In the claim, the respondent sought payment of a Rs. 1,92,41,398/- from the petitioner company which includes Rs. 1,18,84,438/- as outstanding for goods allegedly purchased from the respondent, Rs. 73,45,960/- as interest @18% upto 21.12.2010 and Rs. 11,000/- as notice charges. In the claim, the respondent firm sought to rely upon the purported arbitration clause that was printed upon its bills. The specimen of the clause as appeared on bill No.2463 reads as under:

(3.) The respondent has alleged that it issued legal notice dated 30 th December, 2010 to the petitioner company calling upon it to pay Rs. 1,18,84,438/- with interest failing which the respondent would refer the dispute for arbitration to DHMA.