1. Jetlite (India) Limited (‘JIL’), earlier known as Sahara Airlines Limited (‘SAL’), has in this petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (‘Act’) challenged an Award dated 16th November 2011 passed by the learned sole Arbitrator in the disputes between JIL and the Respondent M/s T.V.C. Sky Shop.

2. JIL (earlier SAL) is a well known airline company operating a large number of passenger flights in India and abroad. Sometime in April 2004, the Respondent approached SAL and expressed its willingness to participate in a “Bid and Win” programme. On 21st April 2004, SAL wrote to the Respondent informing it that its product i.e. TVC gift voucher at the rate of Rs.10,000 each had been finalized for inclusion in the catalogue of the ongoing Bid and Win programme. The Respondent was to supply SAL 1,000 TVC gift products/vouchers at a maximum retail price (‘MRP’) of Rs.10,000 each. In exchange, SAL was required to issue air tickets to the Respondent

at 60% of the total value of the vouchers utilized. It was specifically highlighted that “credit would be given on the number of utilized vouchers”. The said letter, countersigned by the Respondent, contained an arbitration clause.

1. 3. According to the Petitioner, during the financial year 2004-05 and 2005-06 it issued tickets worth Rs.35,76,931 to the Respondent of which tickets worth Rs.2,75,550 were refunded/cancelled. It is stated that net issuance of the tickets was worth Rs.33,01,381 against 540 vouchers issued by the Respondent worth Rs.32.40 lakhs (Rs.10,000 each on which 40% discount was given on each voucher). The Petitioner’s case is that only 540 gift vouchers worth Rs.32.40 lakhs were received from the Respondent. The case of the Respondent, however, was that it had supplied 850 vouchers.

2. 4. In its statement of claim before the learned Arbitrator, the Respondent contended that it had supplied SAL 750 vouchers on 28th April 2004, and 50 vouchers on 9th June 2004 and in all 850 vouchers. Enclosed with the statement of claim were copies of Invoice Nos. 214 and 215 dated 28th April 2004 for 750 quantities of gift vouchers. It, accordingly, was claimed that the Respondent was entitled to get air tickets worth Rs.51 lakhs, whereas SAL had issued tickets worth only Rs.32,40,000. In spite of repeated requests, SAL had failed to provide the Respondent the balance coupon credit of Rs.18,60,000.

3. 5. The Respondent filed in this Court Arbitration Petition No. 244 of 2007 under Section 11(6) of the Act. By an order dated 25th January 2010 the Court appointed a sole Arbitrator. It was stated before the learned Arbitrator by the Respondent that on 30th September 2008 there was a fire in the office/godown of the Respondent which completely destroyed the hard copies as well as soft copies of the documents of the Respondent. In the circumstances, the Respondent sought leave of the learned Arbitrator for exemption from filing the original documents and for filing true copies instead. The Respondent claimed Rs.18,60,000 plus interest at 18% per annum from 2005 till the date of payment.

4. 6. SAL filed its statement of defence and counter-claim in the sum of Rs.61,381 against the Respondent. SAL denied receiving 850 gift vouchers. SAL maintained that it had received only 540 gift vouchers. In addition to the documents filed before the learned Arbitrator, the parties filed their evidence by way of affidavits.

7. The learned Arbitrator framed the following issues with respect to the claim of the Respondent:

“1. Whether the claimant had supplied 850 Gift vouchers worth Rs.10,000/-each to the respondent?

1. 2. Whether the claimant have received tickets worth only Rs.32,40,000/-?

2. 3. Whether the claimant are entitled to Rs.18,60,000/-?

3. 4. Whether the claimants are entitled to any interest, if so, on what amount, at what rate and for what period?”

4. 8. With reference to the counter-claim of SAL, the following issues were framed: “1. Whether the re