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2002 Supreme(SC) 1255

R.C.LAHOTI
SHREEJEE TRACO (I) Private LTD. – Appellant
Versus
PAPERLINE INTERNATIONAL INC. – Respondent


Judgment

R. C. LAHOTI, J.

( 1 ) THIS is a petition under Section 11 (4) of the Arbitration and conciliation Act, 1996 (hereinafter, the Act for short) seeking appointment of an arbitrator for and on behalf of the respondent herein, in the backdrop of the events briefly stated hereinafter.

( 2 ) THE petitioner, a company duly incorporated in India and having its principal office at Delhi placed an order for the supply of facial tissue paper to the respondent, a company incorporated in New York and having its seat thereat. The respondent issued pro forma invoice dated 22-6-2001 wherein one of the clauses provides as under:"any disputes or claims will be submitted to arbitration in New york. "

( 3 ) THE abovesaid clause is treated by the petitioner as arbitration contract between the parties.

( 4 ) THE petitioner opened an L/c as demanded by the respondent and agreed to by the petitioner. The shipment of the goods arrived at Nhava Sheva port at Mumbai. The goods on inspection were found to be not conforming to the sample of goods. The petitioner held the respondent guilty of breach of contract and demanded damages and compensation along with refund of the amount of L/c with interest. Vid







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