- (1.) THIS is an application u/S. 30 of the Arbitration Act filed by S. Pal and Company, a registered partnership firm praying for setting aside the award dated 9/05/1988 made by Sri A. Venkataratnam.
(2.) THE facts may be briefly stated as follows : THE petitioner is one of the leading Organisers of the State Lotteries. It is also the Sole Selling Agent of quite a number of State Lotteries organised by different State Governments. In response to an invitation to tender, published by the first respondent, the petitioner submitted an offer to act as the Sole-selling agent of the Goa Government in organising lotteries on All India basis except in the territory of Goa Daman and Diu. The offer was accepted and an agreement has been entered into between the parties on 15/02/1985 which was subsequently amended and/or modified by the two addenda dated 1/11/1985 and 14/02/1986. Pursuant to the said agreement and the addenda the petitioner had organised lotteries on behalf of the Goa Government, all over India except in the territory of Goa, Daman and Diu. The term of the aforesaid agreement and addenda expired on 17-6-86. During the aforesaid period, the respondent had released lottery tickets, worth Rs. 9.94 crores and Rs. 4.47 crored aggregating Rs. 14.41 crores, and has made payment of a sum of Rs. 1,71,94,700.00 as profit on the basis of agreed rate for a total turn over of Rs. 14.41 crores in terms of the agreements.
(3.) IN or about 10/10/1986 the Director of the First Respondent for the first time alleged that the petitioner has the liability to make a payment for a sum of Rs. 53,80,300.00 on account of alleged shortfall of profit on the alleged fixed turn over of Rs. 15 crores. There arose disputes regarding the liability under the contract and as such the petitioner had to file a Special Suit No. 44 of 1987 in the High Court at Calcutta to prevent the first respondent from illegal enforcement of Bank guarantee provided by the petitioner in terms of the agreement. IN that Special Suit an order of settlement was filed on 21-12-1987. Pursuant to the said term of settlement, the Director of the Respondent No. 1 appointed Mr. A. Vankataratram, the Managing Director of Kadamba Transport Corporation Ltd. Panaji Goa the sole arbitrator who entered into a reference on 21-1-1988.;