- (1.) This First Appeal From Order under Section 37 of the Arbitration & Conciliation Act, 1996 (for short, the Act of 1996) arises out of judgment and order dated 28.7.2009 passed by the District Judge, Kanpur Nagar in Arbitration Case No. 36/70 (Godrej & Boyce Manufacturing Company Limited vs. Secur Industries Limited) by which he dismissed the application under Section 34 of the Act of 1996, moved by Godrej & Boyce Manufacturing Company Limited to set aside the award dated 19.6.2007 made by the U.P. State Facilitation Council (for short, the old Council) subsequently established under the new Act as U.P. State Micro and Small Enterprises Facilitation Council (for short, the Council). The Council awarded a total amount of Rs. 16,75,24,654.29 including, (i) claims made in various debit notes of Rs.4,72,88,000/- and interest @ one and a half time of the prime lending rate charged by the State Bank of India compounded with monthly rests on the principal amount from 2.10.1999, till the date of the award under Sections 4 and 5 of the Act of 1993 of Rs.12,02,36,654.29.
(2.) We have heard Shri Shashi Nandan, Senior Counsel assisted by Shri Yashwant Verma for Godrej & Boyce Manufacturing Company Limited-the objector-appellant; and Shri K.N. Tripathi, Senior Counsel assisted by Shri Atul Dayal for the respondent.
(3.) M/s Secur Industries Limited Ghaziabad-the claimant-respondent filed a Claim No.IFC 40 of 2001, before the U.P. State Facilitation Council (old Council) under Section 6 (2) of the Interest on Delayed Payments to Small Scale and Ancillary Undertakings Act, 1993 (for short, the Act of 1993) with the averments that the parties had entered into an agreement on 12.8.1994 for supply of various items; the terms and conditions of supply, determination of price and other terms and conditions were mentioned in the agreement. The agreement was prematurely terminated on 09.10.1998 before the stipulated period of five years. Some disputes arose between the parties regarding payment of the price of goods supplied under the agreement. A note of demand was sent but that the applicant did not make any payment. The claim was filed in October, 2001.;