GAURANG Vs. VINAY A. CHOKSI

JUDGEMENT

(1.) This petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Arbitration Act") challenges the arbitral award dated 10th August, 2008 made by "Sub- Committee of Producers Grievances Cell and In-House Settlement" (for short "the Committee") of Indian Motion Picture Producers Association (IMPPA). The challenge to the award is on three grounds. Firstly that, there is no arbitration agreement between the petitioner and the respondent. Therefore, the learned arbitrator had no jurisdiction to decide the dispute between the parties. Secondly that, the notice of the arbitral proceedings had not been served upon the petitioner. And thirdly that the award deals with the dispute which is beyond the statement of claim. The respondent contests the petition contending that the same is barred by the law of limitation and also on merits.

(2.) Briefly stated the facts of the dispute decided by the arbitral award are as follows :-

(3.) As the amount under the agreement remained unpaid the respondent by his letter dated 25th July, 2007 complained to IMPPA and requested it to arbitrate upon the dispute. The Committee of IMPPA took up the dispute for arbitration and made the impugned award directing the petitioner, in his capacity as "the proprietor of M/s. V.R. Pictures" and in his individual capacity as "the guarantor" to deposit a sum of Rs.57,00,000/- with IMPPA within a period of one month from the date of the award for paying to the respondent. The petitioner was also directed to pay interest at the rate of 18% p.a. on the amount from the date of the agreement till payment. Being aggrieved by the award, the petitioner has challenged the same by resorting to Section 34 of the Arbitration Act. It would be relevant to note here that during the pendency of the petition, the award was put into execution and one of the properties of the petitioner has been sold.