UNION OF INDIA Vs. SALWEEN TIMBER AND CONSTRUCTION CO INDIA
LAWS(CAL)-1963-4-3
HIGH COURT OF CALCUTTA
Decided on April 05,1963

UNION OF INDIA Appellant
VERSUS
SALWEEN TIMBER AND CONSTRUCTION CO.(INDIA) Respondents


Referred Judgements :-

THAWARDAS FHERUMAL VS. UNION OF INDIA [REFERRED TO]



Cited Judgements :-

GOPI CHAND VS. GENDI LAL SURENDRA FINANCE CO [LAWS(RAJ)-1986-5-21] [REFERRED TO]


JUDGEMENT

A.N.Ray, J. - (1.)THIS is an application for setting aside an Award. The petitioner is the Union of India. By an agreement dated April 8, 1957 the respondent Salween Timber and Construction Co. (India) agreed to supply certain quantities of timber at certain rates mentioned therein. Disputes and differences arose between the parties. In accordance with the Arbitration Agreement disputes were referred to the Arbitration of Sri A. K. Gupta. The Award is dated July 20, 1962. The Award is annexed to the petition and marked with the letter 'D'. The Award is inter alia as follows:
"I hereby award that the respondent, Union of India, at present represented by the Sleeper Control Officer, South Eastern Railway, Calcutta, do forthwith pay to the claimant, the Saiween Timber and Construction Co. (India), 32/1, Dalhousie Square, South Calcutta, the sum of Rs. 34,971.51 nP. only being the amount due to claimant together with interest thereon at the rate of 6 per cent per annum from June 3, 1958 to June 3, 1962 amounting to Rs. 8,393/- only etc. etc. aggregating Rs. 63,83/.01 nP."

(2.)ON August 4, 1962 the Timber company assigned the Award in favour of the Banking company. A copy of the assignment is annexed to the petition and marked with the letter 'A'.
On January 14, 1963 a notice under Section 14(2) of the Arbitration Act was served upon the petitioner.

(3.)COUNSEL on behalf of the petitioner impeached the Award on these grounds. First, that the contract was repudiated on June 3, 1958 and the Arbitrator was caned upon to enter the reference by letter dated March 12, 1962, and the Arbitrator has awarded interest from June 3, 1958 to June 3, 1962. It is therefore contended that the Arbitrator has awarded on a claim which is barred by limitation. Secondly, it is contended that the Arbitrator has awarded interest which amounts to interim interest of the nature provided in Section 34 of the Code of Civil Procedure and that the Arbitrator has no jurisdiction to do the same. In any event the Award in regard to interest should be set aside. Thirdly, it is contended that the contractor asked for Arbitration against the President of India but the Award is made against the Union of India. It is contended that the proceedings which were set in motion rendered the proceeding void ab initio.


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