SAVITA CHEMICALS LIMITED Vs. PUNJAB STATE ELECTRICITY BOARD

JUDGEMENT

(1.) Present revision petition has been filed under Section 115 of the Code of Civil Procedure for setting aside order dated 25.08.2003 passed by learned Addl. Civil Judge (Senior Division), Patiala whereby execution application filed by the petitioner-decree holder has been dismissed. Brief facts of the case are that the petitioner is a company incorporated under the provisions of the Companies Act, 1956. The petitioner is engaged, inter-alia, in the business of manufacturing and dealing in transformer oil. The petitioner also supplies transformer oil to various electricity boards throughout India. On 21.04.1992 vide Purchase Order-cum-Contract Agreement, the respondent - Punjab State Electricity Board placed an order upon the petitioner for sale, supply and delivery of 250 Kls of transformer oil for Rs. 47,75000/-. Subsequently, the quantity of transformer oil to be sold, supplied and delivered to the respondent by the petitioner was increased to 750 Kls. In pursuance of the purchase order, the petitioner started selling, supplying and delivering transformer oil to the respondent. However, in 1993, the respondent cancelled the purchase order pertaining to the balance quantity of 375 kls. of transformer oil. The dispute arose between the petitioner and the respondent. As per clause 22 of the Contract Agreement, the case was referred to the Arbitrator. On 15.11.1995, arbitrator was appointed under the Indian Arbitration Act, 1940 (hereinafter referred to as the "Old Act"). During the pendency of the proceedings before the Arbitrator, the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the "New Act") came into force w.e.f. 16.08.1996. Prior to this an Ordinance was promulgated w.e.f. 25.01.1996. In the month of March, 1996, claim and counter-claim were filed by the respective parties. Ultimately, on 11.03.1908, the arbitrator announced the award and claim of the petitioner to the extent of Rs. 11,88,414/- was accepted while the counter-claim of the respondent to the extent of Rs. 4,04,916.83 was also accepted. As a result, the respondent was directed to pay Rs. 9,26,747.17 to the petitioner within two months. The respondent did not pay the aforesaid amount to the petitioner. Thereafter, the petitioner filed execution application under the New Act to which the respondent filed objections. The Executing Court vide impugned order dated 25.08.2003, accepted the objections filed by the respondent and dismissed the execution application. Hence, this revision petition.

(2.) Learned counsel for the petitioner raised following arguments at bar.

(3.) Learned counsel for the petitioner vehemently contended that the approach adopted by the learned Executing Court is not sustainable in the eyes of law. Learned counsel for the petitioner referred to clause 22 of the Contract Agreement which reads as under:--