F.A.O No.488 of 2008 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. F.A.O No.488 of 2008 Date of Decision: 09.10.2009 M/s Beroke Rice Mills and others ....Appellants Versus PUNSUP and others ...Respondents CORAM : Hon'ble Ms. Justice Nirmaljit Kaur Present:- Mr. Mukand Gupta, Advocate for the appellants. Mr. C.S. Bakshi, Advocate for respondents No.1 and 2. ***** 1. Whether Reporters of Local Newspapers may be allowed to see the judgment ? 2. To be referred to the Reporters or not ? 3. Whether the judgment should be reported in the Digest ? ** NIRMALJIT KAUR, J. This is an appeal against the order dated 09-08-2007 passed by the Additional District Judge, Chandigarh, vide which, the objections filed by the respondents under Section 34 of the Arbitration and Conciliation Act, 1996, were accepted and the impugned order was set aside on technical reasons with the following directions :- “ Nonetheless, since the impugned award has been set aside only on technical reasons and is not intended to exonerate the miller of the contractual obligations/liabilities arising out of the agreement dated 17-11-2009, the Managing F.A.O No.488 of 2008 2 Director, PUNSUP would be at liberty to deal with the disputes afresh in consonance with the agreement dated 17-11-1999. The miller is required to attend the office of Managing Director, Punsup on 01-10-2007 at 10.00 a.m., sharp for being apprised with the decision of Managing Director, Punsup in dealing with the matter further.” While challenging the said order, learned counsel for the appellants submitted that the award dated 26-04-2005 was set aside by the Additional District Judge, Chandigarh, on account of the fact that the dispute fell within the excepted matters, whereas, the dispute does not fall within the excepted matter. The submissions of the learned counsel for the appellants cannot be accepted, in view of the fact that the dispute, referred to the Arbitrator, pertains to late delivery and shortage of bags of rice. The decision of the same was admittedly provided in the agreement. Further, as per Clause 22 of the Agreement, it was agreed between the parties that all the disputes and differences arises out of or in any manner touching or concerning this agreement whatsoever (except as to any matter the decision of which is expressly provided in the contract) shall be referred to the sole arbitration of the SFS or any person appointed by him in this behalf. Thus, as per the agreement, the dispute should have been decided by the Managing Director and not by the Arbitrator. There was no dispute which called for reference to the Arbitrator. This proposition of law is now judicially held by the Hon'ble Apex Court, in the case titled as Food Corporation of India vs. Surendra Devendra and Mahendra Transport Co. 2003(4) SCC 80, as well as, by this Court, in the case, titled as Shree Krishna Rice Mill vs. Markfed 2003(2) CCC 167. Learned counsel for the appellants, at this stage, submitted that the respondents have no objection if the Managing Director decides F.A.O No.488 of 2008 3 the dispute. The only grievance is that instead of Managing Director dealing with the dispute afresh as directed by the Additional District Judge, Chandigarh, while setting aside the award, the Managing Director has once again appointed another Arbitrator by the name of Sh. K.S. Bhullar, A.D.J. A copy of the same dated 19/20-03-2008 has also been sent to the appellants and a photocopy of the same was also placed on record. Learned counsel for the respondents, at this stage, however, made a statement at the Bar that the said order dated 19/20-03-2008, appointing an Arbitrator in the present case if actually issued shall be withdrawn by the respondents. In view of the statement made by learned counsel for the parties, the present appeal is disposed of with a direction that the matter shall now be dealt with by the Managing Director himself and the entire record shall be requisitioned from the Arbitrator. The Managing Director shall, thereafter, proceed with the dispute in accordance with law. Disposed off accordingly. (NIRMALJIT KAUR) 09.10.2009 JUDGE gurpreet