Badri Singh Vinimay Private Vs Mmtc Limited
- Bench: Justice Prateek Jalan
- Appellant: Badri Singh Vinmay Pvt Limited
- Respondent: MMTC Limited
Issue
Is the petitioner right in contending that it had not received the notice for initiation of the arbitration process even when a notice was sent by the respondent?
What is the provision under Arbitration and Conciliation Act, 1996 which takes into consideration the reasons for denial of initiation of the process when notice has not been communicated?
Facts
The dispute, in this case, arises out of the agreement of sale of commodities where the bid by petitioner was accepted by the respondent. But the respondent contended that the petitioner had failed to collect the agreed goods on time which resulted in the sale of goods to third parties by the respondent.
The respondent sought for the initiation of arbitration on the grounds that it had incurred losses during sales of the aforesaid goods.
Further, the petitioner approached the City Civil Court challenging the validity of the agreement itself and the respondent sought arbitration initiation under Section * 8 and 21 of the abovementioned Act but the court did not interfere in the adjournment of arbitration, where even the petitioner did not even participate in the process which resulted in the impugned award.
Appellant's Contentions
The petitioner contended that the invocation of the arbitration process itself was not in accordance with Section 21 of the Act and pointed out that there existed no arbitration agreement itself.
It also contended that it had not received any notice of commencement of arbitration in terms of Section 21 of the Act and Rule 15 of the ICA rules.
The petitioner in a series of notices to the ICA made statements indicating their disinterest towards the invocation of the arbitration process also thereby the appointment of the desired arbitrator.
It also stressed on the fact that the process was not initiated on the lines of the Section under the Act.
Respondent's Contentions
The counsel for respondent pointed out the petitioner's own correspondence showing that it had received the notice of the arbitral proceedings but chose not to participate in the process.
It also contended that the impugned award was passed on a proper appreciation of the evidence led before the learned Arbitrator and, in any event, that the re-appreciation of evidence is beyond the scope of the power conferred by Section 34 of the Act.
Judgement
The order decreed that the petitioner failed to make any interference with an impugned award under Section 34 of the Act and it was dismissed with costs.
Relevant paragraphs:
Section 21 of the Act, which governs the invocation of proceedings, provides as follows:
"21. Commencement of arbitral proceedings.-- Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent. "
ARBITRATION:
Any dispute or difference in respect of any matter relating to or arising out of the contract will be settled in accordance with the Rules of Arbitration of Indian Council of Arbitration, Delhi and the award made in pursuance thereof shall be final and binding on the parties. The venue of the Arbitration will be New Delhi."
