H.P. HORTICULTURE PRODUCE MARKETING AND PROCESSING CORPORATION LTD. (HPMC) Vs. TRUCK OPERATOR&APOSS UNION

JUDGEMENT

(1.) THIS order shall dispose of the application filed by the petitioner/non -claimant under Section 34 of the Arbitration and Conciliation Act, 1996, hereinafter referred to as 'the Act ', for setting aside the award dated 13.12.2005 passed in Arbitration Case No. 1 of 2004 by the sole Arbitrator.

(2.) BRIEFLY stated, the facts of the case are that the petitioner is a body corporate registered under Companies Act, 1956, who entered into an agreement with the respondent/claimant through Shri Balbir Banshtu, its president, vide a written agreement dated 8th August, 2003, for the carriage of culled -apples from various collection centers of Rohru/Chirgaon areas to its Fruit Processing Plant, Jarol, Jabli, Cold Storage Parwanoo and any other specified destination. According to the terms of the agreement, the respondent/claimant, was to have a fleet of minimum 50 trucks registered with them and the petitioner had agreed to pay freight to the respondent at the rate of 0.81 paisa per Kg. for transportation of fruit. There were also provision as to how the losses are to be assessed in case there was some loss in weight of apple sent through the trucks and other terms and conditions were also embodied in the agreement. There was also a clause for reference to the Arbitrator to be appointed by the Managing Director of H.P. M.C.

(3.) THE claimant had submitted a bill of Rs. 20,76,675/ - on account of transportation of culled -apples to different destination points and the petitioner withheld a sum of Rs. 14,13,360/ - and also the security amount of Rs. 2,50,000 / - of the respondent/claimant. In all, the claimant was paid Rs. 3,15,182/ - out of the bill raised by the respondent for Rs. 20,76,675. The Arbitrator as per the impugned award allowed the claim of the respondent/claimant and directed the petitioner to refund a sum of Rs. 16,15,360/ - alongwith interest at the rate of 12%. The petitioner was also directed to return the security amount of Rs. 2,50,000/ - to the claimant/ respondent within two months, failing which, interest at the rate of 8% per annum was also payable.