- (1.) Present appeal under Section 39 of the Indian Arbitration Act, 1940 (In short the Act), has been preferred against the judgment and order dated 27.10.1999, passed by the First Additional District Judge, Sitapur, rejecting the objection filed by the appellant under Section 30/33 of the Act against the Award dated 23.8.1998 of the Arbitrator in Civil Suit No. 11 of 1979. By the judgment and order dated 27.10.1999, the Additional District Judge Sitapur, while rejecting the objection, made the Award Rule of the Court. Hence the present appeal.
(2.) The respondent M/s. Laxmiji Sugar Mills Co. Private Limited (In short M/s. Laxmi Sugar Mills), entered into the agreement on 8.1.1976 with the appellant Sri R.N. Agarwal, Managing Director, M/s. Shree Balaji Textile Mills (P) Ltd., Bangalore. Under the agreement, M/s. Laxmi Sugar Mills had undertaken to sell the business assets of "Narain Vegetable Products" involved in the business of manufacture of vegetable oil Products including Tin Container Plant and Soap Plant. M/s. Laxmi Sugar Mills has been referred as Seller and absolute owner of M/s. Narain Vegetable Products. The agreement with regard to sale of property of M/s. Narain Vegetable Products described in schedule-I of the said agreement, was settled subject to payment of Rs. 50 lakhs by the purchaser.
(3.) The agreement reveals that the appellant R. N. Agarwal has signed the agreement in the capacity of Managing Director of one M/s. Balaji Textile Mills (P) Limited, Bangalore. The agreement provides that the appellant R.N. Agarwal has agreed to purchase the business assets of M/s. Narain Vegetable Products for M/s. Balaji Textile Mills (P) Limited (In short M/s. Balaji Products) or in any other name to be approved by the Registrar of the Companies. The agreement further reveals that on the date of agreement, the buyer had paid a sum of Rs. 6,51,000/- by means of demand draft/cheque and for the rest amount to the tune of Rs. 43,49,000/-, it was agreed that it shall be paid by the buyer to seller after discharging certain liabilities of the seller which are detailed in schedule-II of the agreement. It has been further provided in the agreement that on clearance of such liabilities of the seller by the buyer, it shall be treated as balance of sale consideration to the seller by the buyer for all intents and purpose. It was further agreed that it shall be the duty of seller to discharge other liabilities pertaining to the business of M/s. Narain Vegetable Products carried on till 31.12.1975 and not referred to in Schedule-II. The agreement was signed by the appellant on behalf of M/s. Balaji Product. Clause No. 11 of the agreement provides that in the event of any dispute arising between the parties, the matter may be referred to Arbitrator under the Act.;