GOLDCREST EXPORTS Vs. N V SUISSOEN

JUDGEMENT

(1.) THIS is an appeal against the order of the learned single Judge dismissing the appellants petition filed under section 34 of the arbitration and Conciliation Act, 1996 to challenge an award passed by the second respondent. The Federation of Oils, Seeds and Fats Associations Ltd. (FOSFA ).

(2.) THE two questions, both of which we have answered in the negative, that arise for our consideration are : (i) Whether a party against whom a foreign award is made is entitled to challenge the same under section 34 of the Act? (ii) Whether the mere denial of the existence of the agreement by the party against whom an award is made is entitled to challenge the same under section 34 if the award otherwise would be a foreign award and despite the party in whose favour the award is made stating that it treats the award as a foreign award and shall not either seek its enforcement or rely upon the same for any purpose as a domestic award.

(3.) THE controversy lies in a very narrow compass. The first respondent's case is that two contracts dated the 19th September, 2003 and 24th September, 2003 were entered into between the petitioner/appellant and the first respondent by which the appellant agreed to sell to the respondent a certain variety of sesame seeds. Each of these contracts incorporates an arbitration agreement contained in the International Rules of Arbitration and appeal. The appellant has denied that these contracts were entered into. The appellant seeks to establish the maintainability of this petition in view of this defence.