Health Food Products Private … vs Siddhi Vinayak Industries … on 7 March, 2017

1. The challenge in this petition under Section 34 of the Arbitration &
Conciliation Act, 1996 („Act‟) by Health Foods Products Private Limited to
an Award dated 14th July, 2014 passed by the sole Arbitrator in the disputes
between the Petitioner and the Respondent/Siddhi Vinayak Industries
Private Limited arising out of a Pre-Sale Contract dated 12th April, 2007 in
terms of which the Respondent agreed to purchase from the Petitioner 300
MT of vegetable oil.

2. The background facts are that a Free Trade Agreement („FTA‟) was
executed between the Government of India and the Government of Sri
O.M.P. 1409/2014 Page 1 of 21
Lanka on 28th December, 1998 with a view to promoting economic and
business relations. In the said FTA, a provision was made for free import of
Vanaspati and Bakery Shortening at 0% duty from Sri Lanka to India. The
FTA also provided for an 80% tariff concession on import of Vanaspati oil
and related products from Sri Lanka to India. It is stated that this induced
various manufacturing units to be set up in Sri Lanka to produce Vanaspati
and Bakery Shortening.

Source: Indian Kanoon

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