P.K.LOHRA,J. - (1.) Appellants have preferred this appeal under section 37 of the Arbitration and Conciliation Act, 1996 (for short, 'the Act') to assail order dated 2nd of June 2018, passed by Addl. District Judge No.3, Udaipur (for short, 'learned Court below'), whereby the learned Court below has declined to interfere with order dated 17th of April, 2018, passed by sole Arbitrator in Case No.2/17.
(2.) The facts, apposite for the purpose of this appeal, are that appellant-Company is involved in mining and smelting of zinc, lead and manufacturing of ingots etc in its plants across the country and one of its plant is located at village Putholi, District Chittorgarh. The first respondent is a logistic Company engaged in the business of transporting goods from one place to another. It so happened that the appellant-Company in furtherance of its business, solicited requisite logistic services of first respondent for transporting various materials from its smelting plants to various depots situated all over the country. Thereupon, after due deliberations both the parties entered into contract incorporating the terms of contract in agreement. After execution of the agreement, appellant-Company issued work order to first respondent on 1st of April, 2012 to carry out transportation of various materials from different units and locations/depots of the appellant-Company to various destinations. The details about the works to be undertaken by the first respondent were mentioned in Annex.1, accompanying the work order.
(3.) The term of the contract was for 7 months, i.e. from 1st of March, 2012 to 30th of September, 2012. In terms of the work order, appellant-Company got its goods insured by a marine insurance policy from Oriental Insurance Company Limited. During the subsistence of contract, some dispute cropped up between the rival parties, may be owing to negligence of the first respondent and lack of its due supervision, or otherwise, inasmuch as, the trailer of respondent-Company bearing No.HR-39-C-3713 loaded with 22 packets of lead ingots at appellant-Company's Pantnagar Rudrapur plant disappeared on its way to Kolkata Depot. At the behest of respondent-Company, though FIR was lodged but the efforts made by the efforts made by the police were in vain as the stolen goods not recovered and finally FR was submitted in the matter by Pantnagar Police Station. It is in these circumstances, appellant-Company, while estimating loss suffered by it to the tune of Rs. 36,69,895 in terms of contract, repudiated payment due to the first respondent.;