B.C.RAY, J. - (1.) THIS appeal is at the instance of the Food Corporation of India and two other defendants against the judgment and order passed in Title Suit No. 38 of 1981 by the Subordinate Judge, 2nd Court, Howrah passing a decree in terms of the Award on rejecting the objection under Section 30 of the Arbitration Act. The plaintiff Sarwan Kumar Chowdhury, a Transport Contractor carrying on business under the name and style of M/s. Hare Krishna Roadways as it's sole proprietor was appointed as carrying contractor to transport food-grains and other materials of the Food Corporation of India in or around Calcutta Ration Areas under the District Manager, West, the defendant No. 3 from the Railway Siding at Howrah. The said appointment of the plaintiff as carrying contractor was made for a period of two years with provision for extension of one year. An agreement was executed between the parties to that effect on 16th February 1977. In the said agreement there was an Arbitration Clause to the effect that all disputes and differences arising between the parties out of or in any way touching or concerning the agreement shall be referred to the sole Arbitration of any person appointed by the Managing Director of the Food Corporation of India. THIS Arbitration Clause was embodied in Clause XX of the said contract. It has been stated that after due performance by the plaintiff of his part of the contract strictly in accordance with the terms of the contract as a Transport and handling contractor during the stipulated period the plaintiff submitted bills from time to time in respect of works done for defendant No. 1. The defendants, however, did not pay off all the bill amounts and moreover the defendants illegally and arbitrarily deducted huge sums of money on account of alleged demurrage and wharfage charges. The defendants, it has been stated, have also arbitrarily and illegally deducted a sum of Rs. 71,069.91 paisa on account of shortage assessing penalty calculating three times of the rate payable. The plaintiff, therefore, served a notice under registered cover on 15th November, 1979 under Section 8(1) of the Arbitration Act to the Managing Director, Food Corporation of India for appointment of an Arbitrator under Section 8(1) of the Arbitration Act for adjudication of the disputes and differences between the parties touching the terms of the contract within 15 days from the date of receipt of the said notice. As this has not been done, the plaintiff filed an application under Section 8 sub-section 2 of the Arbitration Act, 1940, in the 2nd court of the Subordinate Judge, Howrah which was registered as Misc. Case No. 1 of 1980 for appointment of an Arbitrator for adjudication of the disputes in terms of the Arbitration Clause 20 of the contract and for other reliefs.
(2.) BY order dated 21st June 1980, Mr. D. P. Chatterjee was appointed as Sole Arbitrator to decide the disputes between the parties as referred to in the petition. The Arbitrator after hearing the parties and considering the documents filed by the parties passed an Award in favour of the claimant for a sum of Rs. 8,53,261.95 paisa to be recovered from the opposite party and also interest of Rs. 1,48,856.25 paisa till the date of reference and further interest @ 9% per annum on the sum of Rs. 8,53,261.95 paisa from the date of reference till the date of payment or decree whichever is earlier. The opposite party was also directed to return the Fixed Deposit Receipt No. 867997 for Rs. 25,000/- issued by the United Bank of India, Kalakar Street, which was furnished as security by the claimant-petitioner and also for refund of Rs. 25,000/- to the claimant-petitioner which was deducted as security from his bills within one month from the date of this Award. The plaintiff thereafter made an application under Section 17 of the Arbitration Act for judgment in terms of the award. The defendant No. 1, the Food Corporation of India filed an objection under Section 30 of the Arbitration Act challenging the award on various grounds mentioned therein. The plaintiff also raised an objection that the application under Section 30 of the Arbitration Act was barred by limitation. On 27th June 1981 Shri Malay Sengupta, Subordinate Judge, 2nd Court, Howrah, after hearing the parties allowed the petition under Section 17 of the Arbitration Act and rejected the objection filed under Section 30 of the Arbitration Act holding, inter alia, that the objection under Section 30 that was filed was not barred by limitation and that the Arbitrator was within his competence to make a lump award without making a separate reference to specific claims and counter-claims. It was also held that the award could not be questioned as bad because it was not a speaking award. It was lastly held that the Arbitrator was within his competence to award interest pendente lite and also interest even up to the date of the decree.
(3.) AGAINST this judgment and order the instant appeal has been preferred by the defendants/Respondents.;