IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC WEDNESDAY, THE 27TH AUGUST 2008 / 5TH BHADRA 1930 WP(C).No. 18616 of 2008(N) -------------------------- PETITIONER: -------------- EMPEE DISTILLERIES LTD., NIDA, MENONPARA ROAD, KANJIKKODE POST, PALAKKAD-678 621, REPRESENTED BY ITS GENERAL MANAGER (OPERATIONS) G.SURENDRAN. BY ADV. SRI.SATHISH NINAN SRI.SANTHOSH MATHEW SRI.ARUN THOMAS RESPONDENTS: ------------------ 1. KERALA STATE BEVERAGES (M & M) CORPORATION LTD., SASTHAMANGALAM, THIRUVANANTHAPURAM. 2. THE FINANCE MANAGER, KERALA STATE BEVERAGES (M & M) CORPORATION LTD., SASTHAMANGALAM, THIRUVANANTHAPURAM. 3. THE MANAGER, KERALA STATE BEVERAGES (M & M) CORPORATION LTD., WAREHOUSE, ALUVA. BY ADV. SRI.P.J.ELVIN PETER,SC,BEVERAGES CORPN. FOR R1-3 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 27/08/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC NO.18616/08 APPENDIX PETITIONER'S EXHIBITS EXT.P1: TRUE COPY OF THE INTERNAL MEMO ISSUED BY THE MANAGING DIRECTOR, KSBC. EXT.P2: TRUE COPY OF the FIR 2402 OF ALUVA POLICE STATION. EXT.P3: TRUE COPY OF THE PERMIT. EXT.P4: TRUE COPY OF THE INVOICE. EXT.P5: TRUE COPY OF THE COMMUNICATION ISSUED TO THE FINANCE MANAGER ON 3.4.2008. EXT.P6: TRUE COPY OF THE CIRCULAR DATED 26.6.2007. EXTS. OF R1 EXT.R1(a): TRUE COPY OF THE RATE CONTRACT ENTERED INTO BETWEEN THE PETITIONER AND THE CORPORATION DT 19.12.06. EXT.R1(b): TRUE COPY OF THE NOTIFICATION DT 19.12.2006 OF THE CORPORATION. EXT.R1(c): TRUE COPY OF THE DETAILS OF THE TERMS AND CONDITIONS OF the RATE CONTRACT DT 19.12.2008. EXT.R1(d): TRUE COPY OF THE NOTICE INVITING OFFERS FOR REGISTRATION FOR SALE AND SUPPLY OF FMFL, IMFL AND BEER TO KSBC UNDER RATE CONTRACT FOR THE YEAR 2008-09 DT 8.2.2008. EXT.R1(e): TRUE COPY OF THE INVOICE NO.695 DT 26.12.2007 OF THE EMPEE DISTILLERIES LTD. EXT.R1(f): TRUE COPY OF THE CHALLAN DT 24.12.2007 ISSUED BY THE KERALA STATE DEPARTMENT OF EXCISE. EXT.R1(g): TRUE COPY OF THE REPORT DATED 8.1.2008 OF THE 3RD RESPONDENT DATED 8.1.2008. EXT.R1(h): TRUE COPY OF THE CIRCULAR DATED 26.6.2007 OF THE CORPORATION. EXT.R1(i): TRUE COPY OF THE NOTICE DT 28.3.2008 OF THE CORPORATION. EXT.R1(j): TRUE COPY OF THE LETTER DATED 26.2.1985 OF THE GOVERNMENT. //TRUE COPY// P.A. TO JUDGE ANTONY DOMINIC, J. =============== W.P.(C) NO. 18616 OF 2008 N ==================== Dated this the 27th day of August, 2008 J U D G M E N T Petitioner is a manufacturer of IMFL, supplying to the 3rd respondent on the basis of a rates contract dated 19th of December, 2006, a copy of which is Ext.R1(a). According to the petitioner on the strength of Ext.P3 permit and Ext.P4 invoice, 650 cases of IMFL was despatched for delivery at the FL Shop, of which the 3rd respondent is the Manager. It is stated that one bottle was stolen end route and a crime was also registered in this behalf. Despite all this, petitioner was directed to pay Rs.20,000/- for regularising the same. 2. Corporation justifies the levy of regularisation charges on the ground that there are provisions to that effect in the rates contract between the petitioner and the Corporation. But however, the liability is disputed by the petitioner. 3. In my view, since the agreement between the petitioner and the Corporation provides for arbitration of disputes between the parties and therefore, if at all the petitioner disputes its liability to pay the regularisation charges, that is a matter to be taken up in arbitration as WPC 18616/08 :2 : provided in the agreement. Therefore, I dispose of this writ petition directing that the petitioner shall pay the regularisation charges due under Exts. P1 and P5, and in the event the petitioner is aggrieved by such payment, it will be open to them to raise the matter in arbitration as provided in the rates contract between the parties. In case payment is not made, it will be open to the Corporation to take appropriate action as it deems fit, to realise the amount due. ANTONY DOMINIC, JUDGE Rp