- (1.) The appellant filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 (in short 'the AC Act, 1996') seeking interim injunction for restraining the respondents from cancelling the agreement dated 17.7.2001 and for permission to allow the appellant to continue operating as the sole distributor of sale of Verka milk and fresh milk products in Chandigarh, Mohali, Panchkula and surrounding areas. It was dismissed by the learned Additional District Judge, Roopnagar, vide order dated 15.6.2006. Hence the present appeal.
(2.) The facts of the case are that the Ropar District Cooperative Milk Producers Union Limited, Mohali-respondent No. 1 (hereinafter to be referred as 'respondent-Union' ) through its Managing Director, had appointed the appellant M/s. Vaishnavi Enterprises, Chandigarh as their sole distributor for the sale of Verka milk and fresh milk products like curd, paneer, lassi and other Verka brand products for Chandigarh, Mohali, Panchkula and its surrounding areas. This agreement was valid for a period of three years from 1.8.2001. The appellant was also to furnish bank guarantee for an amount of Rs. 30 lacs as per condition No. 7 of the agreement. There were other terms and conditions also. The matter went on although with some problems in between but the period of three years expired on 31.7.2004.
(3.) The appellant wrote letters to the respondent-Union for continuing with the business, while the respondent-Union permitted the appellant to continue on temporary basis although their agreement ceased to exist with effect from 1.8.2004. Finally, the respondent- Union informed the appellant that they were at liberty to discontinue the distribution job if they so liked vide their letter dated 19.10.2004 (Annexure A-21).;