DENSO INDIA LTD Vs. TECHNICO INDUSTRIES LTD

JUDGEMENT

(1.) This is a petition filed under Section 11 of the Arbitration & Conciliation Act, 1996 (in short the Act) for appointment of an arbitrator. Notice in this petition was issued on 31.05.2013. Since then the respondent has entered appearance and filed its reply. The petition is resisted primarily on two grounds. First, that there is no dispute obtaining between the parties. Second, that the claim for payment of interest is not covered by the arbitration agreement obtaining between the parties, which is contained in clause XXII of the agreement.

(2.) The respondent has supplied various reasons in its reply including the fact that an amended agreement was circulated on 16.10.2012 for inclusion of clause for payment of interest. It is therefore, apart from anything else, the stand of the respondent that a provision for interest was made prospective and, therefore, it was never the intention of the parties to provide for payment of interest on delayed payment, which is what the petitioner has claimed in the present petition.

(3.) To be noted, the petitioner in terms of clause X(2) of the agreement is claiming interest for payments made against supplies made by it to the responded beyond the 27th day of the month in which the supplies were made.