The court reaffirmed that an agreement can be derived from email communication, establishing parties' contractual relationships and responsibilities, particularly in the context of bailment, with damages awarded for failure to meet storage obligations.

JUDGMENT :

JASMEET SINGH, J.

1. These are cross petitions filed under Section 34 of the Arbitration and Conciliation Act, 1996 (“1996 Act”) seeking to set aside the Arbitral Award dated 02.08.2013 passed in the matter of “Global Agri Systems Private Limited, New Delhi vs. Fresh & Healthy Enterprises Limited New Delhi”. Both the parties have filed their respective petition to challenge the aforesaid Award.

2. M/s Global AgriSystem Pvt. Ltd. (“GAPL”) was the claimant in the arbitration proceedings and M/s Fresh and Healthy Enterprise Ltd. (“FHEL”) was the respondent and counter-claimant.

FACTUAL BACKGROUND (for the sake of convenience factual matrix has been taken from O.M.P. (COMM) 174/2016)

3. FHEL, a wholly owned subsidiary of M/s Container Corporation of India Ltd. (a Government of India Undertaking under the Ministry of Railways), provides cold storage services at FHEL CA Store, HSIIDC Industrial Estate, Rai, Sonepat-131029.

4. GAPL carries the business of fruit and vegetable and has its registered office at K-13A Hauz Khas Enclave, New Delhi-110016.

5. In 2010, GAPL approached FHEL for storing carrots in the cold storage and started storing them in the cold storage facility of the FHEL.

6. In 2011, GAPL again approached FHEL for storing carrots in the cold storage and supplied a written draft agreement to FHEL vide email dated 03.02.2011. Thereafter, emails were exchanged between the parties, which contained the terms and conditions of the work agreed between the parties. In the e-mail dated 18.02.2011, FHEL mentioned as following:-

“1) We can offer Storage for 2500 MT of Carrots.

2) Storage can be extended maximum till 15th Sept. 2011 only. Beyond that date FHEL will have to take necessary action as the chambers will be need by it for its own use.

3) Space required for washing, sorting and grading etc needs to be jointly discussed.

4) Charges for power, water, waste disposal, manpower for waste disposal will be extra and can be jointly decided.

5) Rental Payment has to be on advance and on monthly basis.

6) One month rental to be given as security money.

7) Labour arrangement and charges can be mutually decided among you, FHEL and the labour contractor.

8) We envisage 3 fork lifts will need to be deployed for your work the charges for the same shall be @ Rs 3000/- per day. 9)Our liability stands restricted till maintaining of Protocols jointly agreed only. 10% reading can be above the agreed protocols.

10) For any other services the charges will be extra and can be mutually agreed.

11)For any movement other then loading and unloading the charges will be extra.

12) Operations need to be discussed in detail before hand with our operations team, like how the carrots will be received? How it will be transfeered in to big bins? when washing etc will take place? what will be final packing? etc.

13) For any shifting during storage period the handling cost will be extra.

the above points need to be discussed for finalisation of the agreement, hence you may visit Rai for final discussions.”

7. In response