ORDER :

Prayer: Petition filed under Section 34(2)(b)(ii) of the Arbitration and Conciliation Act, 1996 to set aside the Award dated 18.07.2019 passed by the Arbitrator to the extent as aggrieved by the Petitioner in respect of award relates to the direction to the respondents to pay a sum of Rs.36,00,000/- to the claimant as damage within three months from the date of award failing which pay the said sum of Rs.36,00,000/- with interest @ 18 p.a. from the date of Award till the date of payment and to pay the cost of the petition.

Challenge has been made in this petition assailing the Award passed by the Sole Arbitrator appointed by this Court in respect of the dispute arose between the parties in Dealership Agreement entered between the Claimant and 1st Respondent in the Arbitral proceedings, dated 24.08.1989.

2. The parties are arrayed as per their own rankings before the Arbtitral Proceedings.

3. The brief facts leading to file this Original Petition is as follows:

3.a. The Claimant was allotted LPG Distributorship by the Respondents on 24.08.1989 under SC/ST quota. The Claimant was running a business as the Sole Proprietor from the very inception. Thereafter, the Proprietorship was changed as partnership with the consent of the Respondents in the year 2004-05 and one Mrs.A.Chitra has become other Partner. Thereafter, on 21.09.2012 the Claimant sought permission to induct another Partner Ms.KJ. Gayathri. As directed by the Respondents the draft Partnership Deed was also amended. In the meanwhile the earlier Parnership Deed executed between the Claimant and Mrs.A. Chitra was cancelled on 20.09.2013and bank account also opened and the same was sent along with proposal to the 1st Respondent. However, the said requisition letter was returned by the Corporation. Thereafter, again the Claimant has submitted the proposal along with all the documents on 02.06.2004, 30.06.2004, 20.12.2004, 21.11.2005. However, the 1st Respondent sent a letter to the Claimant continue to run the business in the capacity of Sole Proprietor. It is the further contention of the Claimant that at the time of entering into Dealership Agreement he also took a godown from one Mr.B.S. Subramanian Sha on lease for a period of 15 years with a renewal option for further period of five years.

3.b. After the death of Mr.B.S. Subramanian the property was purchased by one Ms. A.Chitra, the Claimant continued to pay the rental to the said Ms.A.Chitra. After the lease period expired, the said Ms.A.Chitra refused to renew the lease. On 12.01.2011 the 2nd Respondent issued a letter calling for explanation for non-renewal of lease. The Claimant has extended payment of rent to Ms.A.Chitra and enquiry was closed. On 21.9.2012 the Agency was reconstituted with new partner and fresh proposal was forwarded to the Respondent. On enquiry, the Respondents advised the Claimant to effect certain changes in the Partnership Deed when the fresh proposal was sent. The same was processed upto the stage of signing a fresh Dealership Agreement on 27.02.2013. At this stage, the said Ms.A.Chitra issued legal notice dated 11.02.2013. The 2nd Respondent directed the Claimant to cancel the Agreement with said Ms.A.Chitra and the said agreement was also cancelled. Ms.A.Chitra also withdrawn her complaint on 20.09.2013.

3.c. Being satisfied by the explanation given by the Claimant the 2nd Respondent gave an approval for reorganization of the distributorship and also directed the Claimant to register the new partnership. Accordingly, Partnership Deed was executed on 13.02.2013 and registered. The 2nd Respondent wanted the bank account to be closed and also execute the lease deed with the owner of the property. The same was compled on 20.09.2013. However, the Respondents without any reason issued suspension of Dealership on 15.01.2014. Writ Petition challenging the above suspension also filed. Thereafter, show cause notice issued. After that, Order of Termination was issued on 02.02.2015. Hence it is the