Decided on July 26,1985



T.C. Dass J. - (1.)Though a argument was heard finaly on 18-6-1985, the judgment could not be delivered earlier as one of us (Das, J) was away from Gauhati on duty till commencement of the summer recess which ended on 24th July/84. Therefore, the judgment has been delivered today. This appeal arises out of a judgment and order passed by the learned Assistant District Judge No. 1 at Gauhati in Miscellaneous (Arbitration) Title Suit No. 70 of 1982 on 15-10-82.
(2.)The facts leading to this appeal, in short, are that the respondents M/s. Sikaria Sons and Company and the Union of India, the appellant entered into an agreement for grinding wheat for the Defence Services of the Government of India for two years commencing from 1-5-76 to 30-4-78. The agreement was extended for a further period of one year till 30-4-79. Thereafter a dispute arose between the parties as to the transportation charges for which a petition under Sec. 20 of the Arbitration Act was filed by the respondents to refer the matter to the Arbitration as per Arbitration Clause namely, Clause 40 of the Agreement. The Union of India was directed to file the Arbitration Agreement in Court. Ultimately the Union of India appointed Sri P.C. Rao, Additional Legal Advisor, Ministry of Law, Justice and Company Affairs as the sole Arbitrator for adjudication of the dispute. The Arbitrator entered into the reference on 14-9-81 and proceeding started wherein both the parties were sufficietly represented by their respective Advocates. The Arbitrator considered the matter of dispute, took evidence, oral as well as documentary as adduced by the parties and passed the impugned award on 16th day of April, 1982 holding that the appellant herein, the Union of India was liable to pay to the claimant a sum of Rs. 4,99,468.00.
(3.)Thereafter the respondents herein, M/S. Sikaria Sons and Company filed a petition under Sec. 14 read with Sec. 17 of the Arbitration Act with a prayer to make the award as a "Rule of the Court" The Union of India on the other hand filed another application questioning the legality and validity of the award passed by the sole Arbitrator and prayed for setting aside the award in the court of the learned Assistant District Judge No. 1 at Gauhati and who took up both the petitions for disposal on merits. The Union of India by its application for setting side the award challenged the legality of the award on the ground of "legal misconduct" of the Arbitrator in passing the award. The learned Assistant District Judge heard both the parties, considered the award with the reason and at the conclusion of the hearing, rejected the prayer of the Union of India for setting aside the award and allowed the petition of M/s. Sikaria Sons and Company, (the present respondents) filed under Sec. 14 read with Sec. 17 of the Arbitration Act with a direction to pass a decree in terms of the award.

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.