State wins, lottery agent to pay up Rs 10.19 Cr
Source: The Sangai Express

Imphal, July 12 2012: An arbitration case filed at Gauhati High Court by on-line lottery agent MWC Market Services Pvt Ltd against the Government of Manipur claiming about Rs 2300 crores from the State Government to compensate damages caused to the them due to breach of contractual agreement has been won by the State Government.

According to information received from Finance Department, the State Government and the agent signed an agreement on November 20, 2002 for the second time to start online lottery in Manipur.

The first agreement was signed on April 3, 2001.However, the agreement was annulled after imposition of President's Rule in the State.

From October 31, 2003 till January 31, 2004, the agent sold and drew online lottery at their office within 2nd MR complex.

But the agent fled without any notice and sans any information to the Government on February 1, 2004 .

After the agent fled away, the State Government suspended the online lottery from the same day and it forfeited Rs six crores from the agent which was deposited as bank guarantee, informed the source.

Later, the agent filed an arbitration petition before the Gauhati High Court at Principal Seat, Guwahati for appointment of Justice Kuldip Singh (Retd) as sole arbitrator.

But the High Court appointed Justice DN Chowdhury (Retd) to be the sole arbitrator.

The arbitration proceeding was conducted at Guwahati and Imphal from January 21, 2005 to August 31, 2010 and the arbitration award was passed on June 30 which rejected all the claims of the agent.

The Arbitral Tribunal directed the agent to pay Rs 10.19 crores to the State Government in addition to about Rs seven crores already received by the Government including assets.

Until the said amount is paid, the agent should pay interest of 12 per cent per annum.

It was reported that the case was successfully conducted by GN Sahewalla, Senior Advocate of Gauhati High Court.

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