SURVIR ENTERPRISES PVT LTD Vs. MAHARASHTRA STATE COOPERATIVE

JUDGEMENT

(1.) IA No 4915/1990 (u/S 30 and 33 of Arbitration Act, 1940) 1. The petitioner, a limited company, stated to be engaged inter alia in the business of supplying rice to various State Governments by procuring it from surplus States like Punjab and Haryana. The petitioner is also a member of the Punjab Rice Millers Association. Respondent no.1, a State Cooperative Marking Federation, is an instrumentality of the Government of Maharashtra, respondent no.2, and acted at the relevant time as the agency of the State Government for purchase of food grains and other commodities and their distribution to consumers through fair price shops.

(2.) In 1982-83 there was stated to be acute shortage of rice in State of Maharashtra and on 19.01.1983, the petitioner entered into an agreement with the Federation for supply of 50,000 metric tonnes of Parimal rice of the 1982-83 crop season. The terms and conditions agreed to between the parties were reduced into writing which contained Arbitration Clause. The terms and conditions as extracted in the award itself in Para 3 are as under:

(3.) The Ministry of Agriculture, Government of India, on 14.02.1983, granted permission to the Government of Maharashtra to purchase 40,000 metric tonnes of levy free rice and by the telegram dated 18.02.1983 the petitioner offered to furnish performance bond and security deposit of Rs 2 lakh to respondent no.1. The petitioner is stated to have followed this up with the letter dated 02.03.1983 informing respondent no.1 that the demand draft for rupees two lakh was ready with the petitioner.