UNION OF INDIA Vs. KISHORILAL GUPTA AND BROS
LAWS(CAL)-1953-2-25
HIGH COURT OF CALCUTTA
Decided on February 11,1953

UNION OF INDIA Appellant
VERSUS
KISHORILAL GUPTA AND BROS. Respondents

JUDGEMENT

Bachawat, J. - (1.) THIS is an application asking for an order setting aside an award for a declaration that the arbitration agreements under which the award was made have ceased to exist and for an adjudication that the award is a nullity and is void and without any effect.
(2.) THERE were three contracts between the contractor firm Kishorilal Gupta and Bros. and Governor-General of India-in-Council through the Director-General of Industries and Supplies. Each of these contracts contains an arbitration clause. The "material part of the arbitration clause is as follows: "In the event of any question or dispute arising under these conditions or any special conditions of contract or in connection with this contract (except as to any matters the decision of which is specially provided for by these conditions the same shall be referred to the award of an arbitrator to be nominated by the purchaser and an arbitrator to be nominated by the contractor.........." Under each of these contracts the Governor-General in Council now represented by the respondent supplied raw materials and the contractor made part supplies. All these three contracts were later cancelled.
(3.) BY the contract dated 2-4-1943, the contractors agreed to supply to the Government 43,000 laddies cook. This contract was cancelled on 21-5-1945 and a claim by the Government for price of raw materials supplied remained outstanding. On the 6-9-1948 the parties entered into a settlement contract which is as follows: "(1) The contractor expressly agrees to pay the Government the sum of Rs. 3,164-8-0 only on this contract. (2) The contract on payment of the amount mentioned in Clause (i) shall stand finally determined.";


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