MOHAMMAD RAFIQ,J. - (1.) This application under section 11 of the Arbitration and Conciliation Act, 1996, has been filed by petitioner Varun Beverages Limited praying for appointment of sole Arbitrator to decide the disputes between the petitioner and the respondent.
(2.) Mr. Kapil Bardhar, learned counsel for petitioner, submitted that a C and F Agreement (carry and forward agreement) was executed between the petitioner and the respondent at Jaipur on 06.07.2006, whereby the respondent was to act as the petitioner's consigning, storing and forwarding agent at the specified territory for receiving, warehousing, safe and secure storage and dispatch of the goods to all categories of customers in line with the policies decided by the petitioner from time to time. As per terms and conditions of the agreement, the parties were to maintain the books of accounts. Clause 12 of the agreement provides that the petitioner shall supply to the C and F Agent a list of present requirement of accounting documents and procedures, and the C and F Agent shall maintain proper accounts for the money and goods received on account of collection and/or deposits made by the customers of the petitioner and shall send/furnish such other information in such form, as may be required by the petitioner from time to time. Clause 13 of the agreement provides that the C and F Agent shall issue debit/credit notes to the customers of the petitioner or dealers only after approval by the official of the petitioner or as per the commercial policy of the petitioner company, as specified from time to time.
(3.) Learned counsel submitted that pursuant to the agreement, the respondent purchased mentioned articles of the agreement and the petitioner maintained the open and mutual account as per the conditions of the agreement, which was regularly checked by the respondent and till 01.02.2011, a liability balance of Rs. 10,93,205/- upon the respondent was verified and confirmed by the respondent, which was duly confirmed and signed by the respondent on 31.10.2011. The liability upon the respondent had accumulated as Rs. 22,46,537.60 till 31.01.2013 and that liability is still outstanding upon the respondent along-with the interest. The petitioner demanded the aforesaid amount from the respondent by way of a notice dated 09.11.2013. On failure of the respondent to make the liability good, the petitioner demanded the dispute to be resolved through arbitrator as there exists an arbitration clause in the agreement. Clause 29 of the agreement provides for arbitration, which is to the effect that any dispute or differences between the parties arising out of or in connection with the agreement or its performance, shall be subjected to the legal jurisdiction of court situated at Jaipur only. The petitioner served a notice dated 09.11.2013 through his Advocate demanding the dispute to be resolved through arbitrator. Name of Mr. Pravesh Kumar Bhatia (retired District and Sessions Judge) was suggested to be appointed as sole Arbitrator and it was also stated that if the respondent has any objection then he should revert within 30 days from the receipt of the notice. The respondent denied the aforesaid liability. Learned counsel, in support of the arguments, has relied on the judgment of the Supreme Court in Bharat Petroleum Corporation Ltd. v. Great Eastern Shipping Co. Ltd. - (2008) 1 SCC 503.;