MUZZAFAR SHAH Vs. M.M.T.C.

JUDGEMENT

(1.) These are objections preferred under Section 33 of the Arbitration Act, 1940 ("the old Act") to the arbitral Award dated 25.10.2004 made by the learned Arbitrator Mr. Justice S.Ranganathan, retired Judge, Supreme Court of India, whereby the claim of the respondent has been allowed against the petitioner along with interest.

(2.) The respondent MMTC introduced a Domestic Tariff Area Scheme under which it imported gold at concessional rates and supplied it to established manufacturers of gold jewellery in India for manufacture of ornaments which were eventually exported abroad. Under this scheme, the respondent provided assistance to manufacturers and exporters of gold jewellery abroad.

(3.) The petitioner approached the respondent claiming that it had a firm contract with M/s 100 Carats USA Inc. in USA for supply of substantial quantities of gold jewellery. The petitioner requested the respondent MMTC for providing assistance to promote these exports. The petitioner requested the MMTC for providing packing credit limit of Rs.25 lacs subject to the petitioner furnishing necessary collateral security therefor. The petitioner also placed an order dated 29.07.1991 received from the aforesaid American firm for 4 kgs of (assorted plain gold jewellery) of an approximate value of Rs.12,75,000/- on cash on delivery (COD) basis. The details of the bank accounts were also indicated. The petitioner indicated a monthly requirement of 15 kgs of gold. The respondent sanctioned a packing credit limit of Rs.25 lacs on the petitioner executing several documents.