Ranjit Singh And Others vs Food Corporation Of India And Others

Prathiba M. Singh, J

I.A. 2288/2013 (delay)

Learned counsel for the Petitioners submits that there is a delay in the re-filing of section 34 petition against award dated 27th January, 2012.

Objections were filed on 7th February, 2013. Learned counsel for the Petitioners submits that the knowledge of the award having been acquired only

on 15th January, 2013, when the copy of the award was received by them from the ICA, there is in fact no delay. It is the submission of Ld. Counsel

that the knowledge of the award was acquired by the Petitioners only when notice was received by them in the objection petition filed by FCI against

the impugned Award. In fact upon the service of the notice in the said petition filed by FCI, the Petitioners wrote to the ICA and obtained a copy of

the award. Thus, limitation for filing the section 34 petition runs only from the said date.

For the reasons stated in the application, the delay in filing the section 34 petition is condoned. I.A. is disposed of.

O.M.P. (COMM) 336/2016

Present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (‘the Act’) has been filed challenging the award dated 27th

January, 2012 passed by the learned Sole Arbitrator under the aegis of the Indian Council of Arbitration.

Brief facts are that the partnership firm by the name Mahavir Rice & General Mills, Talwandi Bhai, Distt. Frozepur, Punjab had entered into an

agreement dated 21st January, 1995 with the Food Corporation of India (‘FCI’). The said Mahavir Rice & General Mills was an unregistered

partnership firm. There were various partners in the said firm including one Mr. Mohinder Singh. Disputes had arisen between FCI and Mahavir Rice

& General Mills, which were referred to the arbitration. In the said arbitration proceedings, Mr. Mohinder Singh was Respondent No.5. During the

pendency of the arbitral proceedings, Mr. Mohinder Singh passed away and his legal heirs were served through publication. Paragraph 17 of the

award is set out herein below:

“17. The claimant was directed to take appropriate action for substituted service by way of publication in the newspapers with regard to all the

Respondents No.1. The claimant was further directed to issue notices to legal representative of Smt. Agya Wanti W/o Kundan lal (dead) and

Respondent No.5, Sh. Mohinder Singh (dead). Accordingly the claimant issued a notice through the newspaper publication in Punjab Kesery and

another newspaper Jag Bani dated 30.09.2010. It was noticed that the publications were not in accordance with rules. The claimant published fresh

Notices in Tribune dated 16.12.2010 and Jag Bani dated 16.12.2010. Photocopy of the publications have been kept on record .â€​

After passing of the award, the award got challenged by the FCI in OMP (COMM) 335/2016 (Old No. OMP 450/2012). The FCI has filed a petition

under Section 34 of the Act and notice in the said petition was issued to all the parties and the legal heirs of Mr. Mohinder Singh.

Present petition was, thereafter, filed by the legal heirs of Mr. Mohinder Singh taking two pleas i.e.,

(i) That knowledge of the award was acquired by them only when the summons were received in OMP (COMM) 335/2016 titled as Food Corporation

of India v. Mahavir Rice and General Mills and

(ii) That Mr. Mohinder Singh had retired from the partnership firm vide retirement deed dated 28th July, 1994 i.e. prior to the execution of the

agreement dated 21st January, 1995 with FCI.

The fact, that Mr. Mohinder Singh had exited the partnership firm vide retirement deed dated 28th July, 1994, is not seriously disputed either by FCI

or anyone appearing on behalf of Mahavir Rice & General Mills. In fact, the petitions in respect of Mahavir Rice & General Mills being OMPs

(COMM) 334/2016 & 335/2016 have been taken together today. None appears today for Mahavir Rice & General Mills. The copy of the retirement

deed is on record. It is clear that even during the arbitration proceedings Mr. Mohinder Singh had passed away. For both the reasons i.e. demise of

Mr. Mohinder Singh as also his retirement from the partnership firm on 28th July, 1994, the award is held to be not binding on the legal heirs of Mr.

Mohinder Singh. In view of the same, no execution proceedings can be filed by the FCI in respect of this award against the legal heirs of Mr.

Mohinder Singh.

In view of the judgment in Delhi High Court Bar Association & Ors. v. Govt. of NCT of Delhi & Ors. 203 (2013) DLT 129 the court fee, if any

paid, shall be refunded to the Petitioners.

OMP is disposed of in the above terms.