AMAN HOSPITALITY PVT. LTD. Vs. ORIENT LITES

JUDGEMENT

(1.) This appeal is filed by the appellant under Sec. 37(1)(c) of The Arbitration and Conciliation Act, 1996[1] assailing the impugned order dtd. 25/9/2020 passed by the learned Additional District Judge-07, South-East District, Saket Courts, New Delhi[2] in Arbitration Case No. 153/2018, whereby, the application under Sec. 34 of the A&C Act moved by the appellant challenging the arbitral award dtd. 15/12/2017 passed by the learned Sole Arbitrator was dismissed.

(2.) Briefly stated, the claimant, i.e., the respondent before this Court, is stated to be a partnership concern and engaged in the business of lighting consultants, manufacturers and suppliers. Pursuant to an oral agreement between the parties, parties entered into a written agreement dtd. 25/2/2012. Subsequently, the appellant was supplied with various consignments of goods during the period from 2012 to 2016 by the claimant/respondent vide various invoices/bills from time to time and the parties maintained a running account and payments were made from time to time during the ordinary course of business. A dispute arose when the claimant/respondent found that the appellant was in arrears to the tune of Rs.76,58,717.00 as per the running account and since the appellant failed to pay the said amount to the claimant/respondent, despite repeated requests and demands, it became liable to pay interest @ 18% per annum, which was assessed to Rs.44,80,315.00 for the period w.e.f. 1/7/2013 to 30/6/2016 and ultimately a claim for total amount of Rs.1,21,39,070.00 was lodged including interest. Evidently, the dispute was covered by paragraph (10) of the terms and conditions mentioned in various supply orders collectively marked Ex.CW-1/4 in the arbitration proceedings and placed on the record by the appellant, providing as follows:

(3.) When the disputes could not be resolved amicably, the claimant/respondent invoked the arbitration clause and filed an application seeking appointment of an Arbitrator under Sec. 11(2) of the A&C Act before this Court. By virtue of order dtd. 23/6/2016, Mr. B.S. Chumbak, District Judge (Retired) was appointed as the Sole Arbitrator, who entered upon the reference and after lodging of the statement of claim and relevant documents by claimant/respondent and upon filing replies/written defence by the appellant as well relevant documents, learned Sole Arbitrator vide order dtd. 7/1/2017 framed the following issues: