GMB CERAMICS LTD Vs. NEYCER (INDIA) LTD

JUDGEMENT

(1.) Gmb Ceramics Ltd. (in short 'GMB'), the appellant in APO 34 of 2016 entered into a Consultancy Agreement dated 29 November, 1986 with Neycer (India) Ltd. (in short 'Neycer') for setting up a factory for manufacture of vitreous sanitary ware products. The said agreement was converted into a Collaboration Agreement by an addendum dated 26 June, 1987. Disputes and differences arose between the parties in relation to the said agreement. The agreement contained an arbitration clause for resolution of disputes between the parties. The disputes were referred to Joint Arbitrators nominated by each of the parties. In view of disagreement between the Joint Arbitrators, the matter was referred to the Umpire. Learned Umpire published an award dated 23 June, 1999 for Rs. 1169.63 lacs along with interest at the rate of 15 per cent per annum in favour of GMB. Neycer filed an application under Secs. 30 and 33 of the Arbitration Act, 1940 being GA No. 4026 of 2000 for setting aside the said award of the Learned Umpire. The said application was disposed of by the learned Single Judge by a judgment and order dated 14 October, 2015. The learned Judge in effect held that the claim that GMB referred to arbitration was for a sum of Rs. 2 crores and any award in excess of that sum cannot be sustained.

(2.) Appearing for GMB, Mr. Ranjan Deb, learned Sr. Counsel submitted that the Collaboration Agreement between the parties provided, inter alia, as follows:-

(3.) Mr. Deb submitted that Neycer failed, neglected and/or refused to perform its obligations under the said Collaboration Agreement. As a result, GMB suffered substantial loss and damage. According to Mr. Deb, in view of the breaches committed by Neycer, the said agreement stood terminated.