PUNJAB STATE CIVIL SUPPLIES CORPORATION LIMITED v. W. J. TOWELL AND COMPANY AGENCIES (KUWAIT)
1987-05-21
N.C.KOCHHAR
body1987
DigiLaw.ai
N. C. Kochhar ( 1 ) PUNJAB State Civil Supplies Corporation Limited (the petitioner) has filed this petition under Section 8 of the Arbitration Act read with section 151 of the Code of Civil Procedure stating that on 10th February, 1983, the petitioner had entered into a contract with M/s. W. J. Towell and Company Agencies (Kuwait) (the respondent) whereby the respondent was to arrange supply of 50,000 metric tonnes, with plus minus 10% of ordinary Grey Portland Cement at the rate of US $ 40 (forty) per metric tonne F. O. B. stowed from any of the sea port in Taiwan/korea and that under the terms of the agreement, demurrage charges, occurring for any reason, were to be paid by the respondent. It has further been stated that clause 16 of the agreement is an arbitration clause according to which the parties had agreed that in the event of disputes arising between them, the same would be settled by arbitration at Delhi (India) in accordance with the rules of Arbitration Act, 1940 and the award made in pursuance thereof would be binding on the parties. It has been further pleaded that the disputes have arisen between the parties in regard to demurrage charges in respect of vessel "m. V. Mexican Treasure" for 8 days 6 hours 18 minutes at the rate of U. S. $ 2500 per day at Load Port SUAO, Taiwan amounting to U. S. $ 20,256,25 and the petitioner being entitled to receive the said amount from the respondent, had invoked the arbitration clause and vide notice dated 2ith April, 1986 had called upon the respondent either to discharge the liability or to refer the matter to arbitration within 15 days and had suggested that the reference be made either to Justice V. S. Despande or Justice H. R. Sodhi but no communication has been received from the respondent. In these circumstances it has been prayed that an arbitrator be appointed to decide the quantum of demurrage for adjudication of disputes regarding liability of demurrage or any other matter connected and/or arising out of the agreement dated 18th February 1983.
In these circumstances it has been prayed that an arbitrator be appointed to decide the quantum of demurrage for adjudication of disputes regarding liability of demurrage or any other matter connected and/or arising out of the agreement dated 18th February 1983. ( 2 ) NOTICE of the petition was issued to the respondent who did not appear inspite of service and was proceeded against ex parte vide order dated 24th September, 1986 passed by H. C. Goel, J. The petitioner had been allowed to produce its evidence by way of affidavits and documents. ( 3 ) I have heard the learned counsel for the petitioner and have also persued the records of the case. ( 4 ) AFTER perusing the affidavit of Shri R. S. Jha, Company Secretary of the petitioner and the documents filed on record, I am satisfied that the above said agreement had been entered into between the parties and the disputes mentioned above had arisen between the parties and are covered by the arbitration clause in the agreement between the parties. ( 5 ) IN the circumstances I direct that the arbitration agreement between the parties be filed in court. The respondent having not consented to the appointment of either of the two persons mentioned in the petition as an arbitrator, in my view it will not be proper to appoint any one of the two persons suggested by the petitioner to the respondent in the notice dated 24th April, 1986. ( 6 ) A similar dispute arising between the petitioner and M/s. Ballarpur Industries Ltd. and arising out of (he contract having the same clauses and same arbitration agreement was referred to the sole arbitration of Dr. Bakhashish Singh, Advocate, former Government arbitrator and Additional Legal Adviser to the Government of India, in Suit No. 1075-A of 1986. I, therefore, appoint Dr. Bakhashish Singh as the sole arbitrator and refer the dispute in question to him for decision. The arbitrator will give his award within a period of four months from the date of his entering upon the reference or within such time which might be extended with the consent of the parties or under the orders of the court. The fee of the arbitrator is tentatively fixed at Rs. 10,000. 00 to be initially paid by the petitioner. A copy of this order be sent to the arbitrator.
The fee of the arbitrator is tentatively fixed at Rs. 10,000. 00 to be initially paid by the petitioner. A copy of this order be sent to the arbitrator. Suit No. 1076-A of 1987 stands disposed of.