FOOD CORPORATION OF INDIA Vs. MUNNALAL JAIN, EX-HANDLING TRANSPORT CONTRACTOR
LAWS(JHAR)-2003-3-102
HIGH COURT OF JHARKHAND
Decided on March 03,2003

FOOD CORPORATION OF INDIA Appellant
VERSUS
Munnalal Jain, Ex -Handling Transport Contractor Respondents

JUDGEMENT

M.Y. Eqbal, J. - (1.) THIS appeal under Section 39(1)(vi) of the Arbitration Act, 1940 at the instance of the appellant -Food Corporation of India is directed against the judgment and decree dated 14.12.1994 passed by Sub -Judge I, Daltonganj in Money Suit No. 18/82 refusing to set aside the award dated 14.7.1994 passed by the sole arbitrator and making the same rule of the court.
(2.) THE facts of the case lie in a narrow compass : The plaintiff -appellant floated a tender in the year, 1977 for handling and transporting the contract at Food Storage Depot, Daltonganj from the rail head to the depot at Daltonganj. The tender submitted by the defendant -respondent was accepted and contract was allotted to him on the terms of conditions contained therein. The defendant alleged to have continued the work for some time but left the work without giving any information to the plaintiff. The Railway Department claimed the amount of demurrage and warfare from the plaintiff and the plaintiff had to incur ex -gratia payment to the labourers. The plaintiff alleged to have sent several letters to the defendant for resuming the work but the defendant failed to carry out the work. The plaintiff sustained loss of Rs. 55,449/ -. The plaintiff -appellant, therefore, filed Money Suit No. 18/82 for a decree for recovery of the aforesaid amount. In the said suit the defendant -respondent appeared and filed a petition under Section 34 of the Arbitration Act which was rejected by the trial Court but the same was allowed by this court and the matter was referred to arbitration. On 15.5.1992 the respondent filed written statement and counter claim before the arbitrator. The said counter claim was objected by the plaintiff on the ground, infer alia, that as per Clause 13 of the contract any claim ought to have been made within one year. It was the case of the appellant that the counter claim was made after 14 years of the termination of the contract which is beyond the terms of the agreement.
(3.) THE arbitrator, after completion of the arbitration proceeding, submitted his award whereby the claim made by the plaintiff was rejected and on the contrary the counter claim made by the respondent was allowed. After submission of the award the appellant filed an objection under Section 30 of the Arbitration Act challenging the validity of the award. The learned court below, after hearing the parties, passed the impugned judgment rejecting the objection filed by the appellant under Section 30 of the said Act and made the award rule of the court.;


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