District Food And Supplies … vs M/S. Bihari Lal And Others on 9 October, 2009

 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

                            FAO No. 758 of 2006

                                      Date of decision : October 09, 2009

District Food and Supplies Controller, Ferozepur

                                                        .......Appellant
                         Versus
M/s. Bihari Lal and others

                                                        ........Respondents

CORAM : HON'BLE MS. JUSTICE NIRMALJIT KAUR

Present :    Mr. Navdeep Sukhna, AAG Punjab
             for the appellant

             Mr. Mrigank Sharma, Advocate
             for the respondents

NIRMALJIT KAUR, J. (ORAL)

This is an appeal filed by the appellant challenging the order

dated 25.8.2005 whereby the award dated 8.2.2002 passed by the

Arbitrator was set aside on the ground that it is an excepted matter under

Clause 5 and 6 of the Agreement and by holding that the decision with

regard to the date, time, recovery, cost and interest @ 21 % is clearly

provided in the agreement itself and as such aforesaid matters is not liable

to be referred to the Arbitrator and the same was beyond the scope of

arbitration clause and the proceedings before the Arbitrator were clearly

liable to be terminated on this ground alone.

Learned counsels for the parties do not dispute that the said

question has already been judicially settled by the judgment rendered by

Apex Court in the case of Food Corporation of India vs. Surendra,

Devendra and Mahendra Transport Co., Punjab Law Reporter Vol.

CXXXIII (2003-1) 843 as well as subsequent order passed by this Court in

District Food and Supplies Controller, Moga vs. M/s. Aggarwal Rice

Mills Baghapurana Distt. Moga, FAO No. 3521 of 2007 decided on

28.7.2009.

In view of the same, learned counsel for the appellant states
FAO No. 758 of 2006 2

that their only grievance is that while setting aside the award the District

Judge should have granted them liberty to approach Managing Director,

Food and Supplies for adjudication of the said dispute in accordance with

the agreement.

Learned counsel for the respondent has no objection if the

said prayer is allowed.

Accordingly, the order dated 25.8.2005 passed by the District

Judge, Ferozepur is modified and liberty is granted to the appellant to refer

the matter to the Managing Director as per the agreement clause.

The records shall be requisitioned from the Arbitrator by the

Managing Director and the Managing Director shall, accordingly, proceed

in accordance with law.

Disposed off accordingly.

                                                        (Nirmaljit Kaur)
09.10.2009                                                Judge
reena