M/S Hari Om Rice Mills v. Union Of India And Others

, inter alia, for issuance of a writ in the nature of Certiorari for quashing the Physical Verification Report(s), made in the respective cases. 2.

During the course of hearing, it has been informed that there is an Arbitration Agreement between the petitioner(s) and the State Agency. Clause 24 thereof reads as under:- "24.

All the minor disputes relating to interest, penalty, holding charges, milling charges and differences arising out of

interpretations or in any manner touching or concerning this agreement whatsoever shall be referred to the sole arbitrator of the Director Food, Civil Supplies & Consumer Affairs, Haryana/Managing Director of the Agency or any person appointed by them in this behalf. There will be no objection to any such appointment that the person appointed is or was an employee of Food, Civil Supplies & Consumer Affairs Department, Haryana/Agency and he had expressed views on all or any of the matter in dispute or difference. The award of such arbitration shall be final and binding on both the parties to this contract.

It is a term of this contract that in the event of transfer, vacation of office or being unable to act for any reason of a person appointed as an arbitrator by the Director Food, Civil Supplies & Consumer Affairs, Haryana/Managing Director at the time of such transfer, vacation of office, death or inability shall appoint another person to act as an arbitrator. Such a person shall be entitled to proceed with reference from the stage where it was left by his predecessor. Provided that any demand for arbitration in respect of any claim(s) of the Miller/Second Party, under the contract shall be in writing and made within one year of the date of completion or expiry of the period of contract.

If the demand is not made within the period, the claim(s) of the Miller/Second Party shall be deemed to have been waived off and released of all liabilities under the contract in respect of these claims. The cost for and in connection with arbitration shall be the discretion of the arbitrator who may make suitable orders in his award.

Subject as aforesaid, the Arbitration and Conciliation Act, 1996, shall apply to the arbitration provided under this clause. However, the cases of fraud, theft or misappropriation etc. on the part of Second party are not covered under this clause and in such cases legal proceedings as deemed fit will be initiated by the First party against the Second party as well

as against the sureties."

3.

Learned counsel for the respective parties submit that all the differences between the parties can be adjudicated upon by the Arbitrator and none of the parties would have any objection in case the petitioners are relegated to avail the remedy of invoking arbitration under Clause 24 of their respective Agreements.

3.1 It is further agreed that the period of one year for invoking arbitration, as envisaged under first proviso to Clause 24 of the aforesaid Agreements, would stand extended for a period of four months from today. 3.2 It is also agreed that the State Agency would also be at liberty to stake its claim (if so advised), within the aforesaid extended period of four months.

4.

Keeping in view the broad consensus arrived at between the parties, the present writ petitions are disposed of with liberty to the petitioners and also the State Agency to invoke arbitration in terms of Clause 24 of their respective Agreements, within the above referred extended period.