Ashim Kumar Banerjee, J. - (1.) FACTS:
(2.) THE subject matter of dispute would relate to a license for Timber Extraction from the forest of North Andaman. The issue would relate as far as back in 1950's when the Central Government awarded a contract to the appellant for Timber Extraction from the forest of North Andaman. As per the contract, the appellant was to extract Timber from the forest in exchange of royalty to be paid to the Government. They would start with an initial extraction of 10000 metric ton per annum for about two years that would time to time increase up to 75000 metric tons which later on the Governmental agency admitted, was not possible. The dispute arose as the appellant could not extract required amount of Timber thereby causing loss of royalty to the Government. As per the agreement, the issue was to be resolved through Arbitration, the Government appointed a retired Judge of Allahabad High Court as Arbitrator. The parties filed their respective pleadings. The Arbitration concluded after six years on March 18, 1967. The arbitrator published his award in favour of the Government. The arbitrator held, the appellant was obliged to pay royalty to the extent of Rs. 17.28 lacs approximately exclusive of interest. The appellant filed an application for setting aside, the learned Single Judge dismissed the said application. The appellant preferred an appeal. The Division Bench dismissed the appeal. The matter went up to the Apex Court. The Apex Court also dismissed the appeal and the matter reached finality. The Government would now contend, after realization of part decree a sum of Rs. 12 Lacs would still be payable as on March 31, 1974. Since, the appellant went in liquidation; the Government filed an affidavit of proof of debt before the Official Liquidator. The parties also invoked the Arbitration Clause in respect of another transaction on account of shortfall royalty, damages to the extracted Timber, royalty on minor forest produce and another miscellaneous claim amounting to Rs. one crore approximately that the Union of India referred to Arbitration as second Arbitration. The appellant company denied the claim and made a counter claim of Rs. 89.44 lacs. The Government appointed a retired Judge of the Allahabad High Court whereas the company appointed an advocate of this Court as arbitrator. The joint arbitrators held 15 sittings till June 9, 1967 when the advocate nominee was elevated to the Bench. The arbitral Tribunal was reconstituted. The newly reconstituted Tribunal entered upon reference in 1970. There was change of personnel that resulted delay in arbitral proceeding. Ultimately, the arbitral Tribunal could not be ad idem that resulted in appointment of Hon'ble Mr. Justice G.K. Mitter (as His Lordship then was), a former Judge of the Apex Court who acted as Umpire. The Umpire entered upon reference on September 3, 1976.
(3.) THE third arbitration would relate to a claim of the appellant to the extent of Rs. 39000 on account of damage suffered by them. The third arbitration also got delayed in view of change of personnel from time to time. Ultimately, the Tribunal referred the issue to Sri G.K. Mitter with a request to act as Umpire in view of difference of opinion.;