Problem:

1. The Company Geliance Ltd. engaged in a business of manufacturing of pipes and other
Plastic’s Material and selling it on the international market. The Company was established on
12th June 2012 with his Proper MOA and AOA. In its MOA company has clearly mentions its
objectives and in compliance of that company doing its business freely. The Key Managerial
Person Mr. Bharti is running all the activities of the Company on behalf of all members of
company.

2. The Company used to have better raw materials in order to manufacture Pipes and other
Plastic’s Material of better quality. The Company is taking its all raw material at Rs 30 per kg,
and all the leading directors of company decided to choose raw material at lower cost from the
earlier one. Thus they have decided to use that lower cost material in their Plastics Products.
So, they trying to consult other company which will provide raw material at low cost or cost
which is suitable to Geilance. Ltd.

3. In later point of time Geliance Ltd. make an agreement with Rabada Group Ltd, on 17
February 2018 to have a raw material at low cost. In that agreement Geliance Ltd, has clearly
shown its all choices that in order to take material they are not going to lower down the quality
of their Products. Thus in that agreement Geliance Ltd has clearly pointed that if by that raw
material they will not get their products upto the marks then Rabada Group Ltd have to Pay
Compensation. At the same point of time they have also framed an arbitration agreement to
solve their dispute which will arise from this Agreement of Purchasing raw material and they
will solve it with Arbitration and Conciliation Act 1996. They have also agreed that both of
them will nominate their Arbitrator from their own choice. Thus Geliance Ltd has nominated
Mr. Ranjana Desai and Rabada Group Ltd, has nominated Mr. Deepak Gagoi.

4. Now, Geliance Ltd purchase raw material from Rabada Group Ltd, and manufactures its
products and started its selling too. In the meantime Gelince Ltd. got bad feedback from its
Customer and they suffer huge loss in terms of money as well as good will in the market. So
as per the agreement they claiming their compensation to Rabada Group Ltd.
 Issues before Arbitrator

1. Whether the Geliance Ltd, has suffer any loss in terms of its Good will or not.

2. Whether the Company Rabada Group Ltd, is liable to pay the compensation as per
their agreement.
Agreement For Reference To Three Arbitrators

THIS AGREEMENT is made the day of 17 February 2018 between GELIANCE LTD. of the
one part and RABADA GROUP LTD.

WHEREAS the parties hereto have been carrying on the business; in general merchandise in
the business under the business agreement dated 17 February 2018 where under each party is
entitled to equal share in the profit and loss therefrom;

AND WHEREAS the disputes and difference have arisen between the parties aforementioned
and it is impossible to carry on the said business agreement ; and

AND WHEREAS the parties have agreed to refer the dispute to the arbitration of three
arbitrators, namely Mr. Ranjana Desai ,Mr. Deepak Gagoi and Mr. Ruhmani Sahay.

NOW IT IS HEREBY AGREED between the aforesaid parties as follows:

1. The arbitrators will have the power to decide and determine the following matter, which are
referred to their final determination and award-

(a) Whether the Geliance Ltd, has suffer any loss in terms of its Good will or not.

(b) Whether the Company Rabada Group Ltd, is liable to pay the compensation as per their
agreement.

2. The arbitrators shall enter upon the reference on or about the and shall deliver their award
as expeditiously as possible.

3. The decision and the award of the arbitrators shall be final and conclusive and binding on
the parties hereto.

4. The said X shall be the President of the tribunal of arbitration who shall be responsible to
arrange the sittings and conduct of the arbitration proceedings.

5. If there is any difference of opinion between the arbitrators the decision of the majority shall
prevail.

6. The arbitrators may proceed ex parte in case either party fails to appear after reasonable
notice.
7. The arbitrators shall be paid a fee of RS…and such fees as well as the costs of the reference
and other expenses incidental to the arbitration shall be borne and paid by such of the parties
or by both parties in such proportion as the arbitrators shall by their award direct.

8. The arbitrators may, from time to time, call upon any party to submit such documents as
they may require for perusal and consideration in connection with the arbitration. 1/2

9. This agreement shall remain effective and enforceable against the legal representatives of
either party in case of his death.

10. The arbitrators may appoint an accountant to examine the account of the parties if they
think it necessary and the remuneration of the accountant as determined by the arbitrators shall
be the costs in the reference to be paid by the parties as the arbitrators may direct in their award.

11. The arbitrators will be entitled to award money compensation if absolutely necessary in
order to equalise the value of the lots to be allotted to the parties.

12. The provisions of the Arbitration & Conciliation Act, 1996 shall apply to this reference.

13. The costs of this reference shall be in the discretion of the arbitrators.

IN WITNESS WHEREOF the parties hereto have signed this agreement on the day and year
first written above.

Name of the 1st Party Name of 2nd party

Signature Signature
 Arbitration Award
All three arbitrators unanimously decided as per the decided agreement that this agreement is
compliance with Provision of Arbitration and Conciliation Act, 1996. All the procedure
followed here is complying with Section 7 Section 8 and Section 11 of this Act. After going
through all the facts and agreement of this Problem arbitrators are on the view that the claim
of the Company Geliance Ltd is valid and give Award as under:-

1. The Company Geliance engaged in this business from long time ago and being an old
company it has earn so much name in the market and any fall in the quality of the products lead
to damage the Good will of the company. Any dissatisfaction of its customer leads to hamper
the Good will of the Company and moreover the products of the company is not in huge
demand after using this raw material and in consequences of that company suffer huge loss in
terms of Good will and Money.

2. In the way of purchasing raw material at very low cost company try to lower its
manufacturing cost and trying to earn profit by keeping in mind the satisfaction of their
customers. The Geliance has clearly shown its all necessary requirement to Rabada Group Ltd
while purchasing the material and as in the agreement Rabada Group Ltd also agreed on same.
So by keeping in mind of the consent towards the business agreement the Geliance Ltd is not
satisfied by the raw material and as per agreement Rabada Group Ltd has pay Compensation
adequate to the loss suffered by company Geliance Ltd.