VICNIVAAS AGENCY Vs. MMTC LIMITED

JUDGEMENT

(1.) This appeal has been filed under Sec. 37 of the Arbitration and Conciliation Act, 1996 (herein after referred to as the "Act") against the order passed by the learned Principal District Judge, Thoothukudi in A.O.P.No.127 of 2006, dtd. 4/8/2010, under Sec. 34 of the Act, dismissing the petition filed by the appellant challenging the Award passed by the Arbitrator on 16/3/2006.

(2.) The brief facts of the case are that the appellant was appointed as the Handling Agent for the 1st respondent Company for export of wheat from Thoothukudi Port through an Agreement dtd. 1/12/2000. Under the agreement, the appellant was appointed to work as Cargo Handling Agent for the 1st respondent as per the terms and conditions of the Agreement. The further case of the appellant is that under the Agreement, the appellant was expected to receive wheat on behalf of the 1st respondent from FCI godown at Thoothukudi and transport it by trucks to Thoothukudi Port which involves loading the goods into vessels at the specified loading rates. According to the appellant, it is the duty and responsibility of the 1st respondent to supply goods as well as to arrange for vessels.

(3.) In the course of fulfilling the terms of Contract, the appellant had to hire godowns for storage of goods and according to the appellant, the activity of providing for storage godowns to store goods was not contemplated under the Agreement and it did not fall within the scope of the work agreed under the Agreement. However, the appellant took it as an additional work and hired godowns on behalf of the 1st respondent. Initially, when the appellant raised bills for such storage rental charges during February/March, 2001, the 1st respondent paid for it. However, subsequently, the 1st respondent declined to pay such storage rental charges.