RISHABH AGRO INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The present petition under Section 34 of the Arbitration & Conciliation Act, 1996, challenges the award dated 26th August, 2008 passed by the learned Sole Arbitrator, a nominee of the Respondent.

(2.) The proceedings arose out of a contract for supply of milk by the Petitioner to the Respondent for use in the Delhi Milk Scheme ('DMS'). The Petitioner had agreed to supply 25,000 kgs of milk per day. The tender was floated on 31st December, 1993, and was to be in effect till 31st December, 1994. However, on 28th December, 1994, the Respondent unilaterally extended the contract for supply by the Petitioner for another 90 days. The Petitioner, however, due to scarcity of milk did not supply for 3 days i.e. 29th December, 1994 to 31st December, 1994.

(3.) On 1st January, 1995, the Petitioner informed the Respondent that it was unable to make any more supplies, and hence it did not wish to accept the extension of 90 days.