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2000 DIGILAW 1057 (DEL)

HIT ADS PRIVATE LIMITED v. DIAMOND COIR (INDIA) PRIVATE LIMITED

2000-12-06

J.D.KAPOOR

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J. D. KAPOOR ( 1 ) THIS is a petition whereby the petitioner has sought the award made by Justice d. R. Khanna (retd.) to make a rule of the Court. The petitioner was engaged in the business of advertising and during the course of business the petitioner entered into an agreement with the respondent on 7. 8. 1990 whereby the petitioner company was appointed as its sole advertising agent for carrying out the publicity for the respondent company and accordingly the petitioner carried out the publicity work for the respondent. It is averred that during the course of currency of the agreement the respondent started negotiating with some other company in breach of the terms of the agreement. This gave rise to the suit fop permanent injunction by the petitioner. Since the Court declined to grant injunction the petitioner filed CM (Main ). During the proceedings in CM (Main) the parties mutually agreed to get the matter settled by arbitration. This Court was pleased to refer the matter to Justice d. R. Khanna, learned arbitrator for deciding the following disputes: "1. There was a total billing of Rs. 15,10,525. 00 by the petitioner to the respondent under the agreement out of which payment of Rs. 13,41,245. 00 has been made. This is not disputed. According to the petitioner an amount of Rs. 1,69,280. 00 still remains due from the respondent towards the said bills. 2. Another amount of Rs. 73,421. 00 is claimed by the petitioner for short fall in actual bills from the annual figure of Rs. 20,00,000. 00 which under the agreement the respondent had obliged to entrust to the petitioner. For this short fall the petitioner has claimed 15% compensation in terms of clause 10 of the agreement. 3. The petitioner has further claimed Rs. 31,420. 00 as interest on late payments at the rate of 18% per annum. This is on the basis of terms and conditions mentioned on the bills which the petitioner submitted from time to time with the respondent, though, the agreement itself does not make mention of the same. 4. Another sum of Rs. 15,235. 00 is claimed as interest by the petitioner at the same rate from October, 199 1/03/1992 during the period when the litigation between the parties was pending. " ( 2 ) BOTH the parties appeared before the arbitrator and placed all the documents on record. 4. Another sum of Rs. 15,235. 00 is claimed as interest by the petitioner at the same rate from October, 199 1/03/1992 during the period when the litigation between the parties was pending. " ( 2 ) BOTH the parties appeared before the arbitrator and placed all the documents on record. Learned arbitrator passed the award in favour of the petitioner for recove of Rs. 1,94,280. 00 besides the costs of Rs. 500. 00against the respondent. ( 3 ) THOUGH the respondent challenged the award mainly on the ground that the arbitrator had erred in calculating the exact amount, the petitioner was due to recover from the respondent and has not assessed and evaluated the evidence in correct prospective. ( 4 ) IT is settled law that the Court does not sit in appeal to the award of the arbitrator. Since the respondent has only assailed the award on account of its being not passed upon evidence produced by the parties, the same cannot be looked into as by assessing the evidence the Court would be sitting which is prohibited by the Advocate in appeal. I have perused the award. The reasoning of the arbitrator is well considered and cogent and does not suffer from any vice or misconduct or glossing over of any material on the record. The award is of a speaking nature. Each and every claim of the petitioner has been assessed separately along with the counter claim of the respondent. The findings are based on the material on the record. ( 5 ) FOR the aforesaid reasons I reject the objections and make the award a rule of the Court. A decree in terms of the award be prepared. ( 6 ) THE petitioner shall be entitled to interest at the rate of 12% per annum on the awarded amount till realisation. ( 7 ) THERE will be no order as to costs.