DHINDSA RICE MILL Vs. MANAGING DIRECTOR

JUDGEMENT

(1.) The appellant before this court is the Objector who had filed an application under section 34 of the Arbitration and Conciliation Act,1996 for setting aside the award dated July 16,2001 passed by the sole arbitrator. The aforesaid objections were dismissed by the learned Additional District Judge vide order dated February 1,2006. The said order has been challenged by the appellant through the present appeal .

(2.) An agreement was rendered between the Punjab State Civil Supplies Corporation Limited (Punsup) and the appellant,M/s.Dhindsa Rice Mill. As per the aforesaid agreement Punsup supplied 44391 bags weighing 28,854.15 quintals of fine variety of paddy to the mill after making allowance 2% drige i.e. 577.08.300 quintals. The miller was to be paid shelling charges at the rate of Rs.10/- per quintal and double line machine stitching @ Rs.1.25 per bag. In case of shortage, the miller was liable to pay 1 1/2 times of economic cost of paddy. Rice after milling was to be supplied back to the Corporation by the miller. Punsup claimed that there was a late delivery of rice. Consequently, a dispute arose between the parties. The matter was referred for adjudication to the Arbitrator as per the arbitration clause in the agreement.

(3.) The arbitrator had examined the entire material made available to him by the parties vide his award dated July 16,2001. An amount of Rs.95,578/- was held payable along with 21% interest on the principal amount of Rs.7903/- with effect from September 1,1996 till June 10,1997 in favour of the Corporation.