RAVI MITTAL Vs. PANKAJ AGRAWAL

JUDGEMENT

(1.) THE petitioner has filed objections under Section 34 of The Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') against the award dated 6th November, 2012 passed by the independent sole Arbitrator who is former Chief Justice of Punjab and Haryana High Court at Chandigarh. Brief facts are that the petitioner who is one of the promoters of Shree Acids and Chemicals Ltd. (hereinafter referred to as SACL) a public Ltd. Company approached the respondent, a businessman and a director in a number of companies, and represented that the proceedings for settlement of disputes with his brother Sh. Sandeep Mittal a co -promoter are pending and further SACL had become a sick company and is registered with BIFR.

(2.) THE case of the petitioner is that due to paucity of funds he is not in a position to pay off the dues and thus revive SACL and that a minimum of Rs. 1350 lakhs would be required to settle the dues of both secured and unsecured creditors and other statutory dues.

(3.) THE respondent accepted the proposal of the petitioner and agreed to arrange funds to the tune of Rs. 1350 lakhs and an agreement (MOU) dated 23rd July, 2008 was entered into between the respondent and the petitioner.