FAO No. 1027 of 2010 (o&m) 1 In the High Court for the States of Punjab and Haryana at Chandigarh. Decided on 19.7.2010. The Punjab Health Systems Corporation,Chandigarh --Appellant vs. Venus Remedies Ltd and another -- Respondent CORAM: HON'BLE MR.JUSTICE RAKESH KUMAR JAIN Present: Mr.Sourabh Goel,Advocate, for the appellant Rakesh Kumar Jain, J, This appeal is directed against the order of learned Addl.District Judge, Chandigarh, dated 1.5.2009, by which objection filed by the appellant under Section 34 of the Arbitration and Reconciliation Act, 1996 (for short, the Act) for setting aside the arbitral award dated 18.9.2006 has been dismissed. In brief, the appellant issued Purchase Order No. PHSC/P- 1/97/2739, dated 18.11.1997 to the respondent for supply of various medicines amounting to Rs. 41,74,587/-. The medicines supplied through batch No. 364P,113AF and 114F were found to be sub standard on testing by Drug analyst, Punjab. The appellant made certain deductions in the payment which led to the dispute between the parties which was referred to the arbitrator. The arbitrator gave award in favour of the respondent for an FAO No. 1027 of 2010 (o&m) 2 amount of Rs.6,48,240.80paise inclusive of interest @ 18% per annum due up to 10.5.2002 and @ 12% per annum on the original amount from the date of award till realization. In the present appeal, the only argument raised by learned counsel for the appellant is that supply of sub standard medicines is a matter against public policy as it is directly linked to the public at large, therefore, the arbitrator should not have awarded any amount to the respondent. The question of public policy has been thoroughly dealt with by the learned Court below but in view of clause 8.3. of the agreement, it has been held that once medicines have been replaced, the appellant had no right to deduct any amount from the payment to be made to the respondent. Moreover, while deciding question of liquidated damages, the learned Court below has held that no evidence has been led by the appellant before the arbitrator that how much items or supplies were delayed by the respondent. After going through the order of the arbitrator as well as the impugned order and hearing the learned counsel for the appellant, I do not find any merit in this appeal in order to interfere with the order of the Court below. Hence, the present appeal is hereby dismissed in limine though without any order as to costs. No costs. 19.7.2010 (Rakesh Kumar Jain) RR Judge FAO No. 1027 of 2010 (o&m) 3