HINDUSTAN FERTILIZER Vs. J.M. BAXI AND CO.

JUDGEMENT

(1.) The Petitioner, under Sec. 34 of the Arbitration and Conciliation Act, 1996 ("the Act") has objected to the Award so far as it accepted counter claims of the Respondent and awarded Rs.23,94,141.39.

(2.) The Hindustan Fertilizer Corporation Ltd, the petitioner here, and J.M. Baxi & Co. the Respondent entered into two agreements dated 8th June, 1995 and dated 26th June, 1995, pursuant to a Notice inviting Tender (NIT) and work order for stevedoring, clearing, forwarding and handling of imported fertilizers at Navalakhi and Paradeep ports for 1995-96. During the tenancy of the above agreements/work orders, the Respondent handled five imported urea vessels, namely "Nicolai Pogadin", at Navalakhi port. Similarly, Respondents was appointed for handling of five vessels namely "Hiderby", "Maratha Deep", "Jalatapi", "Jagrahat" and "Rosaleen" at Paradeep port. The parties referred certain disputes to arbitration, since they were to be decided by an arbitration, in accordance with the stipulation in the contract.

(3.) The petitioner alleged it suffered loss of Rs.3,84,22,355.29 including interest up to 31.10.1999 mainly on account of short delivery, damaged cargo, demurrage to the ships, cyclone damage, excess utilisation of empty bags, standardisation loss, etc. due to improper handling at Navalakhi port. Further, it claimed interest 20 per annum on the said amount from 1.11.1999 till payment. However, the Respondents statement was that in accordance with the agreed terms and conditions, no amount was payable and also denied that any interest was payable to the Claimants.