SHREE BALAJI ENTERPRISES Vs. BHAGYASHRI ENTERPRISES

JUDGEMENT

(1.) The petitioner has challenged the Arbitral award of the Hindustan Chambers of Commerce dated 9th November, 2012.

(2.) The arbitration was under the initial contract between the parties under 13 invoices of the respondent herein under which Rs.14.51 lakhs were payable for the goods supplied to the petitioner herein. Interest @ 24% p.a was payable on the invoice value. The petitioner issued certain cheques. The cheques were dishonoured. The demand notice was sent on 15th August, 2010 and replied on 24th August, 2010. The parties entered into an Memorandum Of Understanding (MOU) on 9th September, 2010 under which the petitioner herein admitted the entire liability of Rs.14.51 lakhs and agreed to pay the same with interest @ 24% p.a thereon. That payment was not made. The arbitration was invoked under the arbitration clause in the invoices of the respondent herein.

(3.) The petitioner herein, which is a partnership firm of 4 partners, was represented through one of the partners, Rajesh Shah in the arbitration No. 85 of 201112. The petitioner had not appointed its Arbitrator and hence one Arbitrator was appointed on behalf of the petitioner. On 17th January, 2012 the petitioner sent a letter to the Hindustan Chambers of Commerce asking for time. 20 days time was given to the petitioner as per its request dated 17th January, 2012 received by Hindustan Chambers of Commerce on 18th January, 2012. The petitioner thereafter deposited Rs.200/ as the cost of the arbitration in the Arbitral proceeding No.85 of 2011 12. On 21st April, 2012 the petitioner appointed its own Arbitrator. That appointment was accepted by the Tribunal. The petitioner's Arbitrator as also the respondent's Arbitrator appointed a third Arbitrator. The arbitration was to accordingly proceed. On 31st May, 2012 petitioner's other partner, Kapoorchand Shah applied for one month's time on the ground that he had severe backache. That time was granted by the Arbitral tribunal.