- (1.) Jagdish Singh Khehar, CJI - Heard learned counsel for the rival parties.
(2.) Based on a Distributorship Agreement, dated 01.02.1994, M/s Waterbase Ltd. (respondent No.1 herein) commenced to supply prawn feed to M/s Sundarban Marine Products Pvt.Ltd. (appellant No.1 herein). Consequent upon disputes having arisen between the parties, the respondent issued a legal notice dated 27.09.2000, raising a claim of Rs.95,99,569/-, with 24% interest. The respondent called upon the appellant, to refer the dispute to arbitration, under clause 15 of the Distributorship Agreement dated 01.02.1994.
(3.) During the course of hearing, it emerges, that clauses 14 and 15 of the Distributorship Agreement, dated 01.02.1994, are relevant to the determination of the present controversy. Accordingly, clauses 14 and 15 of the Distributorship Agreement dated 01.02.1994 are extracted hereunder: "14. All disputes arising out of or in any way connected with this Agreement shall be deemed to have arisen in MADRAS and only courts in MADRAS SHALL HAVE jurisdiction to determine the same. 15. Arbitration 15.1 In the event of any dispute or difference between the parties hereto as to the operation of this agreement, the Distributor may refer the matter to arbitration, such demand for arbitration shall specify the matters which are in question, dispute or difference and only such dispute or difference, other than excepted matters, for which the demand has been made and no other dispute or difference shall be referred for the arbitration by an officer of TWL/employee to be nominated by TWL and the provisions of the Indian Arbitration Act, 1940 for the time being in force or of any other Act of the Legislature passed in substitution thereof or modifications thereof and for the time being in force, apply to such arbitration. 15.2 The act of Distribution and the responsibilities of the Distributor shall not be suspended or delayed because of the existence of any such dispute. TWL's decision on such dispute or difference shall be conclusive until reversed by the Arbitrator." ;