R. Banumathi, J. - (1.) This appeal arises out of the impugned judgment dated 19.07.2010 passed by the High Court of Delhi in FAO(OS) No.435 of 2010 in and by which the High Court dismissed the appeal filed by the appellant thereby upholding the judgment of the learned Single Judge thereby affirming the dismissal of the objections filed under Section 34 of the Arbitration and Conciliation Act, 1996 against the arbitral award dated 18.03.2005.
(2.) Brief facts which led to filing of this appeal are as under:- An agreement dated 30.08.2001 was entered into between the respondent-Central Warehousing Corporation and the appellant for a period of two years from 28.08.2001 to 27.08.2003 for carrying out the work of Handling and Transportation at Inland Clearance Depot (ICD), Varanasi. The respondent-Corporation terminated the contract on 21.02.2002 under Clause X(A) and X(B) of the agreement due to appellant's poor performance as Handling and Transportation Contractor and deterioration of the situation at the Inland Clearance Depot. The security deposit furnished by the appellant upto the date of termination was also forfeited.
(3.) Dispute arose between the parties which led to the appointment of an arbitrator vide reference order dated 23.09.2002. The respondent-Corporation claimed a sum of Rs.98,06,000/- with interest @ 18% thereon. It was contended by the respondentCorporation that the performance of the appellant was not found satisfactory particularly, in regard to Export loaded Container No.TRIU-4991702x40', which was illegally detained by the appellant and the appellant failed to transport the container to the Port at Navi Mumbai. The said container was handed over to the appellant on 06.11.2001 from the Inland Clearance Depot, Varanasi and did not reach its destination, JNP, Navi Mumbai within the stipulated time period i.e. upto 16.11.2001. When the exporter, M/s Bhola Nath Industries pressed for early recovery of the container and also raised claims towards compensation for loss of the container, the respondent-Corporation started inquiries and issued several notices to the appellant for recovery of the container and non-performance of contractual obligations. Only after intervention of the Courts, the container was located and recovered at Ghaziabad and received back at ICD, Varanasi on 23.05.2003. But by then, the said container missed the export schedule. The exporter initially declared that the cargo stuffed in the container was of no use to him; but subsequently, reprocessed the same to make it usable.;