PRAJA ENTERPRISES Vs. KARNATAKA SOAPS AND DETERGENT LTD

JUDGEMENT

(1.) This is an. application made under Section 8 of the Arbitration & Conciliation Act, 1996 filed by the sole defendant.

(2.) On an invitation of a tender made by the defendant ihe plaintiff submitted its tender on February 17. 1997. After Ihe tender was opened on March 15, 1997 parlies entered into negotiations. Ultimately, by a Fax dated 28/29th March. 1997 the plaintiff withdrew its offer and expressed their inability to negotiate any further as would appear from page 30 of the Affidavit-in-opposition. After the offer was withdrawn the defendant by their telefax dated March 31, 1997 confirmed the original offer of the plaintiff and sent the purchase order for their signature and return. The purchase order stipulates an arbitration clause. The said purchase order also stipulates the following : "CONFIRMATION : The duplicate copy of the Purchase Order should be returned to us. duly signed by you, failing which the bills will not be passed by us in time. Purchase order and the terms and conditions forming part therein should be accepted into Qualified acceptance and acceptances under assumptions, presumptions and imaginary circumstances will not be accepted by us. The Purchase Order communicated io the supplier and retransmitted to and received by the Company, unconditionally without any counter proposal alone shall become legally operative and effective."

(3.) As the plaintiff had already withdrawn its offer they did not return the Purchase Order duly confirmed by them. The plaintiff had three other transactions with the defendant wherein admitted sums were due and payable. The defendant stopped making payment in respect of three other Purchase Orders in view of the plaintiffs reluctance to comply with 4th Purchase Order. Hence the suit.