HAZRAT RICE MILL Vs. STATE OF PUNJAB

JUDGEMENT

(1.) By this common order, CWP No. 26049 of 2022, CWP No. 25565 of 2022 and CWP No. 29929 of 2022 are hereby adjudicated as common questions of law and facts are involved. With the consent of both sides, facts are borrowed from CWP No. 26049 of 2022.

(2.) The petitioner through instant petition under Article 226 of the Constitution of India is seeking setting aside of notices dtd. 31/10/2022 (Annexure P-1) and 10/11/2022 (Annexure P-2) whereby petitioner has been called upon to deposit a sum of Rs.12,98,858.00 awarded by Arbitrator in favour of respondent-MARKFED.

(3.) The petitioner, a proprietorship concern, is engaged in the business of milling rice. The petitioner during 2000-2001 leased out its premises to M/s Swami Traders, Sirhind (in short "lessee"). The said firm applied for allotment of paddy to State Government. The Paddy was allotted to lessee and delivery of paddy was made by MARKFED i.e. State agency. The lessee delivered resultant product i.e. rice to FCI. A dispute arose between lessee and MARKFED with respect to cost of gunny bags. The respondent-MARKFED referred the matter to an Arbitrator who vide award dtd. 5/8/2022 accepted claim of MARKFED and held that lessee is liable to pay a sum of Rs.12,98,858.00. The relevant extracts of the award dtd. 5/8/2022 passed by Arbitrator read as:-