HALDIRAM MANUFACTURING CO LTD Vs. SRF INTERNATIONAL

JUDGEMENT

(1.) The petitioner filed an application under Section 8 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the said Act) against the present respondent as respondent no.1 and M/s Prime International, a partnership firm, as respondent no.2. The petition states that the petitioner is manufacturer/ exporter of high quality of Indian sweets, salty and spicy mixture and pure Asian vegetarian food snacks commanding good reputation. The petitioner is a unit of the Haldiram Group of Companies enaged in the business of financing and exports. The original second respondent is stated to be the sole distributor appointed for distribution of goods manufactured by the petitioner in Saudi Arabia.

(2.) The petition states that an agreement dated 19.6.1997 was entered into between the petitioner, the respondent and the original respondent no.2 for exclusive marketing and distribution of 'Haldiram' brand of snacks and food in Saudi Arabia. The said agreement contains an arbitration clause 20 providing for arbitration as a mode of settlement of disputes. Clause 20 is as under: "ARBITRATION: As applicable for international business."

(3.) The respondent herein is stated to have placed two purchase orders, both dated 14.1.1998, for supply of Haldiram brand of sweets and namkeens on the petitioner and M/s Haldiram Marketing Limited. The goods were to be despatched latest by 5.2.1998 and the payment had to be made by the respondent to the manufacturer within four weeks of handing over of the consignment in Delhi. The goods are stated to be consigned vide invoice dated 9.2.1998 for Rs.2,89,761.46 and invoice dated 7.2.1998 for Rs.1,88,815/-. The first invoice is in the name of the petitioner while the second is in the name of M/s Haldiram Marketing Limited.