Bangalore District Court Sundram Fasterners Ltd vs Deepak Tools Heat Treaters Pvt Ltd on 16 January, 2025 IN THE COURT OF LXXXVII ADDL.CITY CIVIL & SESSIONS JUDGE, BENGALURU (CCH.88) Present: Smt. Roopa K.N., B.Sc., LL.B., LXXXVII Addl.City Civil & Sessions Judge, Bengaluru. Dated : 16th Day of January, 2025 Com.A.P.No.207/2023 APPLICANT/S 1. Sundram Fasteners Limited, Cold Extrusion Plant, Harita Hosur, Tamil Nadu 635 109 Represented by its General Manager Legal, Sri.M.Sundaresan. (By Sri.VSK, Advocate) Vs RESPONDENTS 1. Deepak Tools Heat Treaters Private Limited, No.B14 Hebbal Industrial Estates, Metagally, Mysore 570 016. Represented by its Managing Director Sri.C.M.Subramanian 2. Sole Arbitrator in the matter of A.C.442/2022 Sri. Justice S.R.Somashekara (Retired District and Sessions Judge) Arbitration and Conciliation Centre, Bengaluru /2/ Com.A.P.207/2023 Domestic and International) Khanija Bhavana, Race Course Road, Bengaluru 560 001. (R1 By Sri.AT Advocate R2 Sole Arbitrator) Date of Institution of the suit 16.12.2023 Nature of the suit (suit on U/S 34 of The Arbitration pronote, suit for declaration & Conciliation Act. Possession, Suit for injunction etc.) Date of commencement of recording of evidence Date on which judgment was 16.01.2025 pronounced Total Duration Year/s Month/s Day/s 01 01 00 (ROOPA K.N.), LXXXVII Addl.City Civil & Sessions Judge, (Exclusive Dedicated Commercial Court) Bengaluru. :J U D G M E N T : This Petition is filed by the petitioner under Sec.34 of Arbitration and Conciliation Act, 1996 seeking set aside of /3/ Com.A.P.207/2023 the impugned arbitral award passed by the sole arbitrator in A.C.No.442/2022 dated 2/9/2023. 2. The parties are referred as per their original rank before the arbitral tribunal for the sake of clarity. 3. The brief facts leading to filing of this petition are as follows; Both claimant and respondent are companies. Claimant is engaged in the business of providing components required for heat treatment to industries. It is a small enterprises under the MSMED Act. Respondent placed work orders with the Claimant in the year 2017 for providing certain components required for heat treatment. In that connection, towards the amount due to it from the respondent, the claimant raised invoices amounting to a sum of Rs.6,72,227.78/. Claimant made a demand for payment of the same and the respondent declined to make payment on the ground that the products supplied by the claimant were for the use of the end user by name M/s.GKN /4/ Com.A.P.207/2023 India, which raised a complaint stating that there was defect in the components supplied. The 1 st respondent herein rejected one of the component due to its quality issue. Thereafter both parties moved before MSEFC, Mysore where conciliation was not successful and hence same was referred to Arbitration Tribunal. Before the Arbitration Tribunal this petitioner being the respondent made counterclaim and also resisted for awarding interest in favour of claimant therein. Anyhow the Arbitration Tribunal passed an award in favour of the claimant and awarded interest at the rate of 20% per annum and rejected the counterclaim of this petitioner. This became a cause of action for the petitioner to file the present application. 4. Respondent filed objections to the main petition denying the averments of application filed by the petitioner and inter alia contended that the award passed by the sole /5/ Com.A.P.207/2023 Arbitrator is in accordance with law and hence cannot be set aside