JUDGMENT : (Prayer: Petition filed under Section 34 of the Arbitration and Conciliation Act, to set aside the Arbitral award dated 10/2/2020 passed by the Sole Arbitrator.) 1. This Original Petition has been filed to set aside the Arbitral award dated 10/2/2020 passed by the Sole Arbitrator. 2. Brief facts which are necessary for the disposal of this Original Petition are as follows:- The respondent Company is in the business of supplying lorries to the petitioners and other State owned Corporation to move supplies between godown of the petitioners and with third parties. They had entered into an agreement, dated 1/9/2017 with the second petitioner for Thiruvallur Region, to transport the stocks of the Food Corporation of India to the godowns of the petitioners, for the period 1/9/2017 to 30/6/2018. They had also entered into two agreements with the third petitioner, on 21/8/2017, to move the Food Corporation of India goods in the Chennai North region, for the period of one year from 22/8/2017 and the second agreement on 28/9/2017, to move the non Food Corporation of India goods, within the Chennai North Region for the period of one year from 29/9/2017. The respondent had paid an amount of Rs.14,76,000/- as security deposit to the second petitioner and a sum of Rs.16,61,000/- and Rs.10,22,850/-, as security deposit to the third petitioner, under the respective agreements. The amount of Rs.16,61,000/- security deposit was made by way of cash deposit of Rs.10,00,000/- and a Bank Guarantee for Rs.6,61,000/-. As per the terms of the agreement, the respondent had supplied the required lorries which were either owned by him or leased out from third parties. 3. Considering the rival submissions made on either side, the learned Arbitrator had framed the following issues:- 1. Whether the agreements, dated 21/8/2017, 1/9/2017 and 28/9/2017 between the claimant and third respondent and had been validly terminated as per the terms of the said agreements? 2. Whether the respondent had followed the due procedure for blacklisting the claimant? 3. Whether the termination of the agreements by the respondent smacks of malafides and hence illegal and invalid? 4. Whether the claimant is entitled to the refund of the security deposit sum of Rs.14,76,000/- with interest at 12% p.a., from January 2018? 5. 2. Whether the respondent had followed the due procedure for blacklisting the claimant? 3. Whether the termination of the agreements by the respondent smacks of malafides and hence illegal and invalid? 4. Whether the claimant is entitled to the refund of the security deposit sum of Rs.14,76,000/- with interest at 12% p.a., from January 2018? 5. Whether the claimant is entitled to the payment of the sum of Rs.16,72,462/- towards the work already done by the claimant with interest at 12% p.a., from January 2018? 6. Whether the claimant is entitled to the refund of the security deposit sum of Rs.20,22,850/- with interest at 12% p.a., from September 2018? 7. Whether the claimant is entitled to the sum of Rs.80,65,135/- as damages for the loss suffered during the contractual period? 8. Whether the claimant is entitled to Rs.50,00,000/- as damages for loss of future business? 9. Whether the claimant had violated the terms of the agreements entered into between the claimant and the respondent resulting in blacklisting of the claimant? 10. Whether the claimant is vicariously liable for the commissions and omissions of his lorry driver as per the Clause 22 and 49 of the Agreement, dated 1/9/2017? 11. Whether the claimant is entitled to make claims for damages for loss during the contractual period and future loss in the absence of a contract between the parties? 4. After hearing the arguments advanced on either side, the learned Arbitrator had passed the following award:- a. The proceedings of the second respondent dated 25/11/2017 and 21/8/2018 terminating the contract dated 1/9/2017 with the claimant are held as illegal and invalid and contrary to the terms of the agreement. b. The proceedings of the second respondent dated 27/11/2017 terminating and blacklisting the claimant is held to be illegal and invalid and contrary to the terms of the agreements dated 21/8/2017 and 28/9/2017. c. The proceedings of the second respondent dated 21/8/2018 blacklisting the claimant is held to be illegal and invalid. d. The claimant is entitled to refund of the security deposit of the sum of Rs.14,76,000/- with interest at 12% p.a., from 1/1/2018 till payment. e. The claimant is entitled to refund of the security deposit of the sum of Rs.20,22,850/- with interest at 12% p.a., from 1/1/2018 till payment. d. The claimant is entitled to refund of the security deposit of the sum of Rs.14,76,000/- with interest at 12% p.a., from 1/1/2018 till payment. e. The claimant is entitled to refund of the security deposit of the sum of Rs.20,22,850/- with interest at 12% p.a., from 1/1/2018 till payment. f. The claimant is entitled to realise the outstanding bill amount of Rs.16,72,462/- with interest at 12% p.a., from 1/1/2018 till payment. g. The respondents shall pay to the Chairman a sum of Rs.35,00,000/- within three months from the date of receipt of a copy of this award failing which the said sum of Rs.35,00,000/- shall attract an interest at 12% p.a., till date of payment. h. The respondent shall pay the costs to the arbitral proceedings to the claimant. 5. Being aggrieved, the petitioners had come forward with the instant Arbitration Original Petition. 6. Heard Mr.C.P.Sivamohan, learned counsel for the petitioners and Mr.Adhithyaraj, learned counsel for M/s.P.Wilson Associates for the respondent. 7. Learned counsel appearing for the petitioners submitted that this petition has been filed to challenge the award under various grounds mainly with regard to the damages, viz., para 52 (g) of the award passed by the learned Arbitrator. 8. Learned counsel appearing for the respondent fairly submitted that they have got instructions from the client, to the effect that they have no case to sustain the damages awarded by the learned Arbitrator. 9. I have perused the materials available on record. 10. In the award, the learned Arbitrator has held that the order of blacklisting the respondent is absolutely illegal and malafide and awarded a sum of Rs.35,00,000/-, as damages payable by the petitioners to the respondent for blacklisting the respondent contrary to the terms of the agreement, with an interest of 12% p.a., till the date of payment. As the counsel also fairly submitted that they have given up the damages with regard to 52 (g) of the award of the learned Arbitrator, award of the learned Arbitrator granting Rs.35 lakhs with interest at the rate of 12% alone is set aside and the rest of the award stands confirmed. 11. Accordingly, this Arbitration Original Petition is partly allowed. Consequently, A.No.2771 of 2021 is closed.