2021 (7) TMI 518

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.... VEDAMURTHY., ADVOCATE ORDER The petitioner, who is issued with the Work Order to supply and install detachable fit-outs for retail liquor outlets in 20 districts of the State, has filed this petition for appointment of a Retired District Judge as the Sole Arbitrator to enter reference of the dispute between itself and the respondent invoking Clause 12 of the Agreement dated 31.08.2017 concl....

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....167.20/- and for a storage rack is Rs. 38,094.40/-, and these prices are inclusive of all applicable taxes. The respondent has issued communication dated 09.11.2018 unilaterally reducing the cost per unit of a dispensing unit to Rs. 94,185/- and the cost per unit of the storage rack is reduced to Rs. 35,118/- relying upon a certain opinion of the Finance Department on the impact of reduction in th....

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....axes, and there is no agreement for altering the cost per unit in the event there is any variation in the tax paid or otherwise. In the absence of such agreement, it would not be open to the respondent to unilaterally reduce the cost. Hence, there is a dispute as contemplated for arbitration, and this dispute must be resolved by arbitration as agreed. The agreement dated 31.08.2017 is not disputed....

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....n whether the respondent could have insisted for reduction in the agreed cost per unit consequent to reduction in the GST rate., and the controversy would be within the fold of a dispute contemplated for resolution by arbitration under the agreement dated 31.08.2017. The petitioner has invoked the arbitration Clause in issuing the legal notice dated 16.12.2020 calling upon the respondent to convey....