Britannia Industries Limited vs Vinpack (India) Private Limited

K.L. Manjunath, J.—The appellant in MFA No. 11685/2011 is questioning the order passed by the First Additional District, Judge. Bangalore Rural District dated 5th November 2011 passed in AA No. 28/2011. Similarly, the appeal in MFA No. 8281/2011 is filed challenging the order of the aforesaid Court dated 20th August 2011 passed in AA No. 26/2011. Both the petitions were filed by M/s. Britannia Industries Limited against M/s. Vinpack (India) Private Limited u/s 9 of the Arbitration and Conciliation Act.

After arguing the matter at length without prejudice to both the parties respondent in MFA No. 11685/2011 has agreed to return the machineries and equipments of the appellant subject to the appellant paying a sum of Rs. 19,25,000/- subject to the out come of the arbitration which would be initiated by both the parties to resolve their dispute in terms of the arbitration clause of the contract entered into between them dated 10.07.2000.

Accordingly the counsel for the appellant in MFA No. 11685/2011 has handed over DD for Rs. 19,25,000/- drawn in favour of the respondent and the same is acknowledged by the learned counsel appearing for M/s Vinpack (India) Private Limited.

The respondent shall deliver the machinaries and equipments today only to the appellant - M/s. Britannia Industries Limited and it. is open for the appellant to collect the same from the respondent company.

The claim made by each other shall be resolved through an arbitration.

The learned counsel appearing for both the parties submit that they have no objection to appoint Hon''ble Mr. Justice S. Venkataraman. termer Judge of this Court as sole arbitrator to resolve their dispute. Both the parties are at liberty to approach the arbitrator and submit their claim. It is open for the Hon''ble Arbitrator to fix the charges and dispose of the arbitration proceedings in accordance with law.

The original bank guarantee furnished by the appellant herein for a sum of Rs. 19,25,000/- before the Trial Court on 20th August 2011 in AA No. 26/2011 which is valid upto 23.05.2012 stands cancelled in view of the payment made. It is open for the appellant to approach the Court below to receive back the original hank guarantee. Accordingly these two appeals arc disposed of by consent of the parties.