HI-TECH SYSTEM Vs. ROBINSON

JUDGEMENT

(1.) THE present petition has been filed under Sections 8 and 20 of the Arbitration Act, 1940 (hereinafter referred as "the Act") for filing of arbitration agreement and reference of the disputes between the parties to Arbitration. The brief facts discernible from the plaint are that the plaintiff was entered into an agreement dated 4.2.1988 with M/s. Henry Simon Ltd., for promotion of sales of their breakfast cereal plants. The plaintiff was entitled, for the work done by it, compensation by way of commission to be paid by the principal i.e. the said M/s. Henry Simon Ltd. Clause 13 of the Agreement defined the rate of commission in regard to various classes and categories of goods, to be marketed by the plaintiff. The agreement contained a stipulation that inter se disputes would be referred for arbitration. The said condition, i.e. clause 14 was in the following terms: -

(2.) THE plaintiff avers that it had been asked to resolve serious disputes by M/s. Henry Simon Ltd. with M/s. Asia Ahar Ltd., regarding supply of plant and equipments to the latter. M/s. Asia Ahar Ltd. had filed a Suit being No. 873/1988 on the file of this Court. M/s. Henry Simon Ltd. had been injuncted from re -exporting or re -selling their machinery in the proceedings. The plaintiff, it is claimed with considerable effort, resolved the dispute.

(3.) IT is alleged that serious problems constantly arose in concerning execution of the agreement with M/s. Asia Ahar Ltd. and commissioning of the plant supplied by M/s. Henry Simon Ltd. The plaintiff claims to have expended its efforts as well as money for settling those disputes. Eventually M/s. Henry Simon Ltd. received the full payment for the plant and equipments supplied to M/s. Asia Ahar Ltd. The plaintiff alleges that repeated assurances were held out regarding payment of its commission, by M/s. Henry Simon Ltd.