GMB CERAMICS LIMITED Vs. NEYCER INDIA LIMITED

JUDGEMENT

(1.) The Court :- This is an application filed under section 14(2) of the Arbitration Act, 1940 inter alia for an order directing the learned umpire to file his award dated June 23, 1999 and further praying for an injunction restraining the respondent, its servants, agents and assigns from filing the said award dated June 23, 1999 or causing the same to be filed with regard thereto in any Court other than this Hon'ble Court.

(2.) The facts of the case briefly are as follows :- The petitioner for the purpose of setting up the factory for manufacture and production of the vitreous and sanitary were products applied and obtained term loan and financial assistance from the Industrial Finance Corporation of India in consortium with IDBI and ICICI (hereinafter referred to as the Financial Institutions) inter alia on the terms and conditions contained in the respective agreements entered into between the parties. The respondent agreed to impart to the petitioner technical know how and expertise including manufacturing process, engineering data, consumption norms, fire-cycles, utility requirements and all such information necessary for the purpose of establishment and setting up and depute and retain at site expert technician for manufacture and production of vitreous sanitary ware manufacturing unit at the factory of the petitioner at Balasore, State of Orissa for consideration and inter alia on the terms and conditions contained in a Deed of Collaboration agreement dated November 29, 1986. The said Deed of Collaboration agreement was modified and varied in the manner and to the extent mentioned in the Deed of Amendment dated June 26, 1987 between the petitioner and the respondent. The said Deed of Collaboration Agreement as amended hereafter referred to as said contract. The said contract contains an Arbitration Clause. The said Arbitration Clause is set out hereunder :-

(3.) According to the petitioner, the respondent failed, neglected, refused and/or delay to impart expertise, technical know how, depute technical and supervisory personnel and perform its obligations under the said Contract. By reason of the premises, the petitioner suffered loss and damages inasmuch as the respondent failed and neglected to perform its obligation under the said contract. In these circumstances, disputes and differences arose between the parties and the arbitrators were appointed in terms of the said arbitration agreement.