Arbitral Award – Section 34 – One of the challenges was to the order dated 10.10.2022 dismissing application for additional documents after completion of oral evidence and arguments of the claimant.

Respondent, a partnership firm, is an importer, trader and distributor of mobile phones and related accessories.   The petitioner had entered into agreement on 29.1.2016 with the respondent for after-sale services of mobile phones.  The petitioner was to provide service centres.

The dispute arose between the parties.   On 15.11.2017, the respondent encashed bank guarantee of Rs.1 crore furnished by the petitioner.   The petitioner, on the other hand, had claimed Rs.2,69,67,450/- as stated in the notice dated 12.4.2018.  The arbitration was invoked by the respondent vide communication dated 18.3.2019 and the Arbitral Tribunal of three members was constituted.

After completion of the oral evidence and after conclusion of arguments of the claimant – respondent,  the petitioner filed an application dated 3.9.2022 for additional documents of further delivery challans. It was rejected by the order dated 10.10.2022

Thereafter, by the Award dated 19.8.2023, the sum of Rs.3,36,01,783/- with interest was awarded to the respondent.  

HELD that much turns on the decision dated 10.10.2022 dismissing the petitioner’s application to place evidence on record.   It was seen that the application dated 3.9.2022 for additional documents was made three years after the petitioner filed statement of defence, counter claim and documents.  In the interregnum, affidavits of evidences were filed, their oral evidence was also concluded and the arguments of claimant were concluded.  There was no mention in the application that the documents were not within the knowledge and possession of the petitioner.  It is clear that the application was made at the stage of arguments only to meet queries raised by the Tribunal with regard to insufficiency of evidence led by the petitioner.  Allowing the application would take the case back to the stage of trial and examination of witnesses.

Judgment dated 20.3.2024 in O.M.P. (COMM) No.511/2023 of M/s. Fortuna Skill Management Pvt Ltd Vs. M/s. Jaina Marketing and Associates