1. By this petition filed under section 34 of the Arbitration & Conciliation Act, 1996, the petitioner has impugned the arbitral award dated 10th December, 2012 passed by the learned arbitrator thereby allowing part of the claims made by the respondent. Some of the relevant facts for the purpose of deciding this petition are as under :

2. Some time in the month of October, 2007, the respondent was in the process of producing a Hindi movie titled “Banda Yeh Bindass Hai”. The proposed title of the film was changed from “Pappu Pass Ho Gaya” to “Banda Yeh Bindass Hai”. Prior thereto, on 11th August, 2007, the respondent had addressed a letter to Mark Meyerson of Twentieth Century Fox admitting that the proposed film “Pappu Pass Ho Gaya” was an Indian adaptation of film “My Cousin Vinny” and offered a token of US $ 25,000 to the said Twentieth Century Fox for the same. On 20th September, 2007, IDBI had sanctioned financial assistance to the respondent of about Rs.750 lakhs for the said film titled “Pappu Pass Ho Gaya” on certain terms and conditions. The respondent had accepted the said offer and had accepted the terms and conditions of the financial assistance offered by the said IDBI by addressing a letter on 22th September, 2007. On 3rd October, 2007, the said IBDI and the respondent executed a loan agreement by which the respondent had borrowed a sum of Rs.750 lakhs from the said IDBI. A Deed of Hypothecation was also executed by the respondent in favour of IDBI admitting the first charge on the negatives of the film “Pappu Pass Ho Gaya”. On 4th October, 2007, a tripartite Laboratory Agreement was executed between the petitioner, which was then titled as “Adlabs Films Limited”, the respondent herein and the IDBI recording various terms and conditions agreed by and between those parties.

3. On 16th October, 2007, correspondence was exchanged between the respondent and the said Twentieth Century Fox with respect to adaptation of the film “My Cousin Vinny” in the form of the proposed film “Pappu Pass Ho Gaya'. On 27th December, 2007, the petitioner and the respondent executed “The Term Sheet” in respect of the said film “Banda Yeh Bindass Hai” which title was changed from “Pappu Pass Ho Gaya”. On 14th March, 2008, the petitioner and the respondent entered into a Distribution Agreement under which the respondent granted exclusive distribution rights to the petitioner in respect of the film “Banda Yeh Bindass Hai” on various terms and conditions recorded therein.

4. It is the case of the petitioner that as on 31st March, 2008, the petitioner had paid a sum of Rs.7.00 crores under the said Distribution Agreement to the respondent. On 15th April, 2008, the respondent addressed a letter to the petitioner requesting for payment of Rs.1.00 crore as per schedule. On 7th June, 2008, the respondent addressed a letter to the petitioner alleging that the shooting of the said film was over and requested for release of under production amount of Rs.1.25 crores. It is the case of the petitioner that on 30th June, 2008, the respondent failed to deliver the said film which was the date of delivery mentioned under the said Distribution Agreement. On 1st July, 2008, the said Distribution Agreement was amended to record the change in the name of the petitioner from “Adlabs Films Limited” to “Big Pictures”.

5. It is the case of the petitioner that on 8th August, 2008, the said film was allegedly shown to one Sunir Khetarpal, who was one of the then employee of the petitioner, according to the respondent. The petitioner has disputed this allegation of the respondent that the said film was shown to the said Sunir Khetarpal. On 20th August, 2008, the respondent addressed a letter to the petitioner informing that the first copy of the film would be ready by September, 2008. It is the case of the petitioner that in the month of September, 2008, the respondent had started receiving legal notices from Twentieth Century Fox alleging that the said film “