SAVORIT LIMITED Vs. CHAIRMAN & MANAGING DIRECTOR

JUDGEMENT

(1.) This 'Original Petition' ('OP' for brevity) has been filed under Section 34 of 'The Arbitration and Conciliation Act, 1996' ('A and C Act' for brevity) assailing an 'arbitral award dated 25.01.2016' ('impugned award' for brevity) made by an 'Arbitral Tribunal' ('AT' for brevity) constituted by a sole Arbitrator.

(2.) Before proceeding further, it is necessary to make it clear that in A and C Act, with regard to recourse against arbitral award, a legal proceeding for setting aside an arbitral award has been referred to as 'application' in Section 34 of A and C Act. However, such a legal proceeding assailing arbitral awards under A and C Act are being given the nomenclature 'Original Petition' in this Registry and therefore, I am referring to the instant proceedings as 'OP' for the sake of convenience and clarity.

(3.) Central theme of this lis is supply of 'Fortified Atta' (hereinafter 'FA' for brevity) to the 'Tamil Nadu Civil Supplies Corporation' ('TNCSC' for brevity). It is not in dispute that this FA was for the purpose of distribution by TNCSC as part of its activity i.e., 'Public Distribution System' ('PDS' for brevity). TNCSC invited tenders for supply of FA and 'M/s.United India Roller Flour Mill (a Division of Savorit Limited)', which shall hereinafter be referred to as 'Contractor', was the successful bidder. It is not in dispute that supply of FA by Contractor to TNCSC commenced in March of 2009 and it continued till March of 2012. It is also not in dispute that for such supply, there were 5 agreements for five different periods between March of 2009 and March of 2012. These five agreements are dated 08.09.2009, 29.10.2009, 25.08.2010, 23.02.2011 and 30.01.2012. There is also no dispute or disagreement that these five agreements are adverbatim the same as far as the crucial and critical covanents are concerned.