RAYMOND LIMITED Vs. MILTEX APPARELS

JUDGEMENT

(1.) This Petition is an appeal filed under Sec. 37(2)(a) of the Arbitration and Conciliation Act, 1996 ("the Act"), challenging an order dated October 4, 2023 ("Impugned Order"), by which a Learned Arbitral Tribunal upheld a challenge to its jurisdiction under Sec. 16 of the Act. The core issue that has to be adjudicated in this Petition is whether the agreement between the parties stood extended beyond its stated term, bringing within the scope of the arbitration clause contained in it, disputes relating to activities conducted during such extended term.

(2.) The Petitioner, Raymond Ltd. ("Raymond") is a manufacturer of ready-made branded garments while Respondent No. 1, M/s Miltex Apparels ("Miltex"), a partnership firm, is a distributor of such branded garments manufactured by Raymond in the territories of Mumbai, Navi Mumbai and Thane up to Dahanu Road and Raigad District ("Territory"). The other Respondents are partners of Miltex.

(3.) A company called Raymond Apparel Ltd. and Miltex executed a Distributor Agreement dated June 9, 2015 ("Distributor Agreement") by which Raymond granted Miltex exclusive rights to distribute products to Raymond's dealers in the Territory for a period of two years. The parties continued to engage commercially. Miltex continued to distribute Raymond's products in the Territory beyond the two-year period provided for in the Distributor Agreement.