- (1.) The challenge to the arbitral award in the present proceedings under Section 34 of the Arbitration and Conciliation Act, 1996 is primarily on the ground that the arbitrator did not take into account the material before him that the claim of the respondent herein stood satisfied upon the supply of tea effected by the petitioner company.
(2.) The facts as are relevant for the present purpose may be culled out from the impugned award of July 4, 2014. The parties apparently entered into an agreement on April 1, 2005 under which a sum of Rs.65 lakh advanced by the respondent to the petitioner was to be adjusted against the supply of green tea by the petitioner to the respondent. For the three financial years of 2005-06, 2006- 07 and 2007-08, the petitioner herein was to supply green tea leaves of value of Rs.15 lakh each; and, in course of the financial year 2008-09, the petitioner was to supply green tea leaves of value of Rs.20 lakh. The respondent claimed in the reference that the petitioner neither supplied the tea nor repaid the amount despite demands.
(3.) The respondent relied on a cheque for Rs.71,50,000/- apparently issued by the petitioner in its favour and claimed that such cheque was dishonourd upon presentation and it was evident that the respondent's claim was undisputed. For reasons not necessary to be gone into herein, the arbitrator disregarded the dishonoured cheque. However, the arbitrator proceeded on the claim under the agreement of April 1, 2005 and the petitioner's defence thereto.;