SKIPPER FOODS PVT. LTD. Vs. HINDUSTAN UNILEVER LTD.

JUDGEMENT

(1.) The Sec. 37 Appeal is by the original claimant in arbitration, Skipper Foods Private Limited ("Skipper Foods"). It challenges an order dtd. 2/3/2006 of a learned Single Judge of this Court (DK Deshmukh, J) allowing the Sec. 34 Petition filed by the present Respondents, Hindustan Unilever Limited ("HUL") against an arbitral award of 6/7/2005. HUL was the respondent in arbitration.

(2.) Skipper Foods received an award in damages in the amount of Rs.32,74,800.00 with interest at 10% per annum. The dispute between the parties arose under an Agreement dtd. 10/5/1994. That Agreement did contain an arbitration clause. Brooke Bond Lipton India Limited ("BBLI"), now amalgamated with HUL, intended to market and sell ice-cream under the brand name Dollops. BBLI entered into an Agreement with Skipper Foods to manufacture ice-cream.

(3.) Ms Jain for Skipper Foods would have it that the contract in question, properly read, and especially if seen with later correspondence makes it clear that BBLI (and now HUL) had guaranteed a minimum purchase or off-take of Skipper Foods' ice- cream production. This minimum was, she maintains, 50,000 litres per month. Because there was such a minimum purchase guaranteed, Skipper Foods modified and upgraded its manufacturing facility and expanded its capacity. Despite this BBLI placed orders for very small quantities. Only 10% of this quantity, if that, was ever taken up. There was thus a breach of the Agreement.