ESPN INC Vs. ISHAN CREDITS LTD

JUDGEMENT

(1.) THIS appeal was filed against the order dated 7.10.2003, whereby Additional District Judge, Chandigarh, dismissed the objections filed by the appellant under Section 34 of the Arbitration and Conciliation Act (Act for short). The award by the Arbitrator was passed ex parte against the appellant.

(2.) THE backdrop of the matter was that the parties entered into an agreement on 4.8.1994, whereby the respondent was to set up a terrestrial television channel for sports in India. According to Clause 3 of the agreement, advance payment was made by the appellant in foreign currency as the appellant was a firm based in United States of America. The respondent claimed that they had performed their part of the contract and asked the appellant to make payment of the balance fee. Various demands were made by the respondent and the appellant through its representatives wrote a letter dated 4.1.1996 to Mr. RK. Sharma, of the respondent firm and informed in unambiguous words that conditions of the agreement had not been met by the respondent. Thereafter, there was no correspondence between the parties.

(3.) HOWEVER , to the utter surprise of the appellant, the firm was served with a copy of plaint dated 22.5.1999 filed by the respondent before the Civil Judge (Senior Division), Chandigarh, in a suit for mandatory injunction. The appellant wrote various letters to the respondent but the former received a legal notice dated 13.6.2000 from the latter calling upon the appellant to appoint its Arbitrator. According to the agreement between the parties, in case of dispute, one Arbitrator was to be appointed by each party.