B.P. RICE MILLS Vs. PUNSUP

JUDGEMENT

(1.) THIS appeal has been filed by the appellants challenging the order dated 20.07.2006 passed by the Additional District Judge, Chandigarh whereby the objection petition filed by them against the award dated 19.07.2000 passed by the sole Arbitrator under Section 34 of the Arbitration and Conciliation Act, 1996, has been dismissed.

(2.) BRIEFLY stated the facts of the case are that on 23.12.1995, Punjab State Civil Supplies Corporation Limited (for short "the PUNSUP") entered into an agreement with M/s. B.P. Rice Mills, Sarhall Road, Tarn Taran, District Amritsar (hereinafter referred to as "the miller") for milling of paddy to be supplied to it by the PUNSUP and the rice so milled was to be supplied by the miller to the Food Corporation of India on behalf of the PUNSUP. It was provided in the agreement that in case the entire paddy was not milled within the stipulated period, the PUNSUP would be entitled to recover 1.5 times the economic costs of left over paddy from the miller along with interest at the rate of 21% p.a. It was pleaded that as per the agreement, 8892.75 quintals of common variety of paddy in 13682 gunny bags and 3335.80 quintals of fine variety of paddy in 5136 gunny bags wee entrusted to the miller for milling. The miller refused to receive common variety of rice and the PUNSUP was made to shift common variety of paddy to some other place. It was further pleaded that the miller failed in honouring the time clause of the agreement as he had refused to receive and mill 13382 bags of common variety of paddy which caused financial loss to the PUNSUP. Accordingly, the PUNSUP filed a claim petition for the recovery of Rs. 51,14,273/- from the miller as due upto 13.11.1998 along with interest at the rate of 21% per annum.

(3.) THE Tribunal vide award dated 19.07.2000 allowed the claim of the PUNSUP to the extent of Rs. 99,360/- with future interest at the rate of 21% per annum from the date of award till realization. The counter claim of the miller was dismissed.