HILLS TRADE AGENCIES Vs. KARBI ANGLONG AUTONOMOUS COUNCIL

JUDGEMENT

(1.) Heard Mr. D. K. Mishra, learned Senior counsel, assisted by Mr. K. Goswami, learned counsel, appearing for the petitioners. Also heard Mr. J. Chutia along with Mr. R. M. Das, learned Standing counsel, Karbi Anglong Autonomous Council, appearing for the respondent.

(2.) By this application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short, "1996 Act"), the petitioner has prayed for appointment of an Arbitrator for resolution of disputes which had arisen between the petitioners and the Karbi Anglong autonomous Council (for short, "Council").

(3.) An agreement dated 02.11.2011 was entered into by and between the Council, represented by its Principal Secretary, and the petitioner No. 1, which is a registered partnership firm. The petitioner No. 2 is a partner of petitioner No. 1. By the aforesaid agreement, the Council had agreed, amongst others, to fell, extract, cut and stack raw-materials (bamboo) and to supply the same from the operating area to the petitioner No. 1, and the petitioner No. 1 had agreed to buy the raw-materials and to transport the same from the operating areas to the factories to be set up under the provisions of the agreement. In consideration of supply of raw-material to be utilized by the petitioner No. 1, the petitioner No. 1 was required to pay to the Council an amount of Rs. 310/- per Metric tonne as royalty. The agreement was to be valid for a period of twenty years from the date of operation of the new working plan of bamboo of Karbi Anglong District, which is to be approved by the Ministry of Environment and Forest, Government of India. The period for which bamboo working plain remains unapproved for any year, will be included in the aforesaid period of twenty years and the petitioner No. 1 will not be entitled to receive any supply of bamboo from the Council for the period during which the working plan is not in force. The royalty was to be increased at the rate of 5% after the end of each year during the tenure of the agreement.