Rajendra Nath Mittal, J. - (1.) THIS appeal has been filed against the order of the Senior Sub Judge. Patiala dated 4th February, 1983.
(2.) BRIEFLY the facts are that tender enquiry Q 10 (dis) dated 17th July, 1972 was floated by the Punjab State Electricity Board (hereinafter referred to as the Board) for sale of 500 MT of copper scrap The tenders were required to be accompanied with the earnest money at the rate of 2% of the tendered price as security. The conditions of sale were that the officer inviting tenders had the right to change the quantities of material offered for sale at any time to accept or reject any or all of the tenders received without assigning any reason. M/s Goyal Electric Stores, Chandigarh (hereinafter referred to as the Goyals) sent a tender dated 15th July, 1972 offering to purchase whole of the quantity at graded rates, i. e., for 20 MT at the rate of Rs. 14.71, 30 MT at the rate of Rs. 14.61, 100 MT at the rate of Rs. 14.53, 100 MT at the rate of Rs. 14 31, 100 MT at the rate of Rs. 14.21 and 150 MT at the rate of Rs. 14.11 per Kg along with security of Rs. 1 lac. It was stated in the tender that a sum of Rs. 57,000/ - was already lying with the Board and that amount be treated as further security. It is alleged that the Board accepted the offer of the Goyals for first 347 MT at their quoted rates. They lifted the above quantity from 1st March, 1973 to 16 July, 1974. The Goyals then wrote to the Board that the latter should allow them to lift further 153 MT of copper scrap. The Board did not agree to that. The Goyals thereafter referred the matter to the Chairman of the Board stating that the above said quantity be given to them and in case it was not possible, the matter be referred to the arbitration in pursuance of Clause 12 of the tender. They also appointed Shri Madan Mohan Gupta, Advocate, Respondent No. 2 as their arbitrator and requested the Chairman to appoint the Board's arbitrator. The Board appointed Shri O. P. Sharma, Respondent No. 3 as its arbitrator. Both the arbitrators entered upon the reference and unanimously passed an award that the Board should supply 153 MT of copper scrap to the Goyals against payment as per tender rates. The Goyals would further be liable to pay sales tax, etc. as mentioned in the tender enquiry. Their claim for damages to the tune of Rs. 25,000/ - was, however, rejected by the arbitrators. The award was filed in the Court of the Senior Sub Judge for making that a rule of the Court.
(3.) THE Board filed objections against the award. It was inter alia stated by it that there was no agreement between the parties to supply 153 MT and that the arbitration clause to refer the matter to the arbitrators, therefore, did not apply. The arbitrators consequently had no jurisdiction to decide the matter. It was further alleged that the arbitrators acted with haste for not serving a notice on the Board and that they also misconducted themselves and the proceedings.;