PARAS FOODS Vs. STATE OF HARYANA

JUDGEMENT

(1.) This application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act of 1996") has been filed for appointment of an Arbitrator to adjudicate the dispute between the parties.

(2.) At the outset, it must be noticed that the respondents have not filed any response to the application. Notice was issued to the respondents on 26.10.2018 and they appeared through their counsel on 08.02.2019. Thus, approximately, one year and 10 months have elapsed, however, no response has been filed. Therefore, it is safe to assume that the respondents do not wish to file any reply. At the time of hearing, no request for adjournment was made to enable them to file reply.

(3.) As per the pleaded case of the applicant, the parties entered into an agreement on 26.09.2018. The agreement was with respect to milling of paddy. The paddy belong to the Haryana Agro Industries Corporation Limited, whereas it was given for milling to the applicant herein Paras Foods. The applicant claims that the milling charges have not been paid although substantial quantity of rice milled from the paddy has already been delivered. It is further pleaded that the respondents are illegally and arbitrarily demanding an amount of ^ 2,85,00,000/- from the applicant. The clause 24 of the agreement reads as under: