Prathiba M. Singh, J. - (1.) The present petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenges the award dated 23rd October, 2013 passed by the Learned Sole Arbitrator.
(2.) The Petitioner - Food Corporation of India (hereinafter, "FCI") and Shree Guru Nanak Rice Mills and Partners (hereinafter "miller") had entered into a milling agreement dated 16th February, 1995. Under the said contract, the miller was to mill the paddy and supply the rice to FCI. As per the contract, FCI had supplied 33561 bags (21788.60 quintals) of superfine variety paddy to the miller for milling and to be delivered to FCI by 28th February, 1995. It is claimed by FCI that the miller had milled only 24585 bags (15661.03 quintals) of paddy by 28th February, 1995. The balance paddy in 8976 bags (5807.96.500 quintals) was not milled and had to be sold by FCI at a lower price pursuant to the open sale notice issued on 14th March, 1995.
(3.) The FCI, alleged breach of contract by the miller and invoked arbitration for failure to mill the paddy on or before 28th February, 2018, claiming 11/2 times rate of the unmilled paddy as the economic cost. The miller on the other hand claims that it had performed its part of the contract satisfactorily and there was no unmilled paddy lying in its premises as it had sold by the FCI. It also referred to a zonal committee report which classified the cases of such kind into 3 categories which are: • Category (a) - cases where NDCs (No-Due Certificates) are issued by the FCI; • Category (b) - cases in which the FCI has been able to receive the required percentage of rice and/or cash in lieu of rice for the rest of the paddy stocks resulting therein that FCI does not have any claim/demand from the miller; • Category (c) - cases of pilferage/dispersal of stocks of their own without knowledge of FCI.;