DIVERSEY INDIA PRIVATE LIMITED Vs. WAVERLEY PRIVATE LIMITED

JUDGEMENT

(1.) BY this petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short "the said Arbitration Act"), the petitioner has impugned the arbitral award dated 4th May 2012 made by the learned arbitrator in so far as the learned arbitrator has rejected a part of the claims made by the petitioner. The petitioner was the original claimant whereas, the respondent was the original respondent in the arbitral proceedings. Some of the relevant facts for the purpose of deciding this petition are as under :

(2.) PRIOR to June 2005, the respondent was acting as a distributor for the petitioner in certain areas earmarked in Sri Lanka. There was no written agreement between the parties prior to June 2005. On 14th June 2005, the parties entered into an agreement for sale of products manufactured by the petitioner which were to be distributed by the respondent in the earmarked territory in Sri Lanka. On 13th June 2006, the first agreement came to an end.

(3.) ON 1st April 2007, the petitioner and the respondent entered into an agreement. The said agreement was to be operated for a period of two years ending 31st March 2009. Under the said agreement, the petitioner appointed the respondent as its distributor in the Institutional and Industrial Channels of Trade for the purpose of selling or otherwise for the products of the petitioner in the specified territory on the terms and conditions set out therein. Under the said agreement, the respondent was granted 75 days' credit from the date of invoicing for the products purchased from the petitioner and the respondent was to establish Letter of Credit or TT to avail the said credit facility. Under clause 6.3 of the agreement, either party could terminate the said agreement without being required to assign any reason at any time by giving the other party 90 days prior written notice.