Back
High Court o Calcutta
Tapen Sen, J.
Anamika Farm – Appellant
Versus
State Of West Bengal – Respondent
W.P. No. 23647(W) of 2008
Decided on : Apr 25, 2012
CONTRACT DISPUTE - ARBITRATION CLAUSE - FACTUAL DISPUTE - WRIT PETITION DISMISSED - ARBITRATION RECOMMENDED - [AGREEMENT FOR ROYALTY, CLAUSE 20] - THE COURT HELD THAT THE DISPUTE BETWEEN THE PARTIES IS SUBJECT TO ARBITRATION AS PER THE AGREEMENT AND DIRECTED THE PETITIONER TO AVAIL THE ARBITRATION REMEDY.
Fact of the Case:
THE PETITIONER, A FRANCHISEE OF THE WEST BENGAL LIVE STOCK DEVELOPMENT CORPORATION LTD., FILED A WRIT PETITION CHALLENGING THE TERMINATION OF ITS AGREEMENT AND THE CORPORATION'S ACTIONS OF DISCONNECTING ELECTRICITY AND WATER SUPPLY, AND PUTTING A LOCK ON ITS BUSINESS PREMISES.
Finding of the Court:
THE COURT FOUND THAT THE AGREEMENT BETWEEN THE PARTIES CONTAINS AN ARBITRATION CLAUSE PROVIDING FOR THE RESOLUTION OF DISPUTES THROUGH SOLE ARBITRATION BY THE CHAIRMAN OF THE CORPORATION.
Issues: 1. WHETHER THE DISPUTE BETWEEN THE PARTIES IS SUBJECT TO ARBITRATION. 2. WHETHER THE CORPORATION'S ACTIONS WERE UNCONSTITUTIONAL DUE TO LACK OF DUE PROCESS.
Ratio Decidendi: 1. THE COURT RELIED ON THE ARBITRATION CLAUSE IN THE AGREEMENT, WHICH STIPULATES THAT ANY DISPUTES BETWEEN THE CORPORATION AND THE FRANCHISEE SHALL BE REFERRED TO THE SOLE ARBITRATION OF THE CHAIRMAN OF THE CORPORATION. 2. THE COURT HELD THAT THE DISPUTED QUESTIONS OF FACT, INCLUDING WHETHER THE CORPORATION FORCIBLY ENTERED THE PREMISES OR THE PETITIONER ABANDONED THE UNIT, CANNOT BE DECIDED IN A WRIT PETITION.
Final Decision: THE COURT DISMISSED THE WRIT PETITION AND DIRECTED THE PETITIONER TO AVAIL THE ARBITRATION REMEDY AS PROVIDED IN THE AGREEMENT.
Tapen Sen, J.
1. IN this Writ Petition, the Petitioner prays for an Order commanding upon the Respondents to withdraw the Notice pertaining to termination of the agreement dated 21.2.2007 which was executed by and between the Petitioner and the West Bengal Live Stock Development Corporation Ltd.; The Petitioner further prays for an Order commanding upon the Respondents to remove the padlock put by the said Corporation on the business premises of the Petitioner and allow him free access to the premises for purposes of operating the business. The Petitioner also prays for a direction directing the authorities to restore electricity and water supply to the premises. The Petitioner also makes a prayer for damages caused by the corporation by forcibly entering into the premises and disconnecting power supply.
2. THE Petitioner has stated that it is a Proprietorship Firm which is involved in the business of poultry, production of chicken with the help of modern equipment and sale through different units and allied business. On 21.1.2006, a Tender Notice was circulated by the said Corporation in the newspaper (Aajkal Patrika) inviting tenders from interested persons/concerns for operating a marketing centre at Belgachia (Raja Manindra Road, Gariahat, and Jodhpur Park).
3. PURSUANT to such Notice, the Petitioner participated and his tender was accepted. A work was issued and although the Petitioner's offer was in respect of marketing stalls at Belgachia, Gariahat and Jodhpur Park and although the same were accepted, he was however allowed to carry on business at 37, Belgachia Road as a Chicken Semi-automatic Processing Plant, Fast Food Counter, Garden and Air-conditioned Restaurant. Thereafter, in the year 2006, an agreement was entered upon by and between the Petitioner and the Corporation and thereafter, the Petitioner started a Chicken Processing Unit on and from 22.2.2006. Subsequently, the second phase being the Garden Restaurant was also started. The Petitioner has stated that for purposes of running such a business, the Petitioner had to make substantial investment for renovating the Unit and for purchasing costly equipment. It took loan from the Indian Overseas Bank, Tegharia Branch. Thereafter, one registered Agreement dated 21.2.2007 was executed by and between the Corporation and the Petitioner. It was agreed that the Petitioner being a Franchisee, shall pay to the Corporation a sum of Rs.20,000/- (Rupees twenty thousand) as royalty for every quarter, payable in advance with the current quarter for the first phase and then Rs.30,000/- (Rupees thirty thousand) for operation of the fast food restaurant quarterly as royalty, in advance before the beginning of the quarter. In the Agreement, it was also stipulated that the Petitioner shall deposit a sum of Rs.40,000/- (Rupees forty thousand) for the first phase i.e. for the operation of the processing counter and Rs.60,000/- (Rupees sixty thousand) at the time of opening of the second phase i.e. the Restaurant, as security deposit, to be refunded on the expiry/termination of the agreement after deducting any sum that may be due and payable to the Corporation by the said Franchisee.
4. THE Petitioner has stated that he also paid a sum of Rs.1,00,000/- (Rupees One lakh) towards security deposit for carrying on the chicken processing unit and the Restaurant and the said amount is still lying with the Corporation.
5. WHILE the Petitioner was carrying on business, the Avian Flu (Bird Flu) struck in many parts of India as a result of which, the chicken and chicken related business suffered. The said flu caused intensive damage to the poultry industries. The Petitioner has stated that since the outbreak of bird flu, its business suffered and a Representation was sent to the Principal Secretary, Government of West Bengal (who is also Chairman of the Corporation) for extending relief. Similar request was made to the Managing Director also. The Petitioner has stated that due to the
AI
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
