DIGVIJAY CEMENT COMPANY LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) In pursuance of disputes between the parties to the contract dated 25.9.1976 the same were referred to the sole arbitration of Shri Ram Bahadur, Additional Legal Adviser to the Government of India, Ministry of Law, Justice and Company Affairs. The arbitrator so appointed entered into the reference and thereafter upon hearing the parties has passed an award on 28.7.1992. The said arbitrator filed the award alongwith the records of arbitration proceedings in this court, on receipt of which notices were issued to the parties. In pursuance thereof the respondent/Union of India filed objections against the award on which I heard the learned counsel appearing for the respondent at length.

(2.) The objection against the award is on the ground that the arbitrator committed an error apparent on the face of the record by not considering the letter dated 24.10.1979 of Registrar, Restrictive Trade Agreements, and also in holding that that the `Fall Clause' is not attracted in the present case.

(3.) Ms. Jyoti Singh, counsel appearing for the respondent submitted that the contents of the aforesaid letter dated 24.10.1979 would indicate that the petitioners were giving a commission of 2-1/2% to the distributors and a commission of 5% to the sub-agents on A.C.Pressure Pipes and fittings of the List Price, and thus, the petitioners were selling those goods at a lower price than what was contemplated under the agreement and therefore the Fall Clause gets attracted.