H M KAMALUDDIN ANSARI AND CO SHANKAR VIJAY SAW MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE two connected appeals by special leave are directed against the judgment and order of the Allahabad High Court and Delhi High Court dated 24/01/1980 and 13/11/1979 respectively. The first one arises out of proceedings under Section 20 of the Arbitration Act while the other arises out of proceedings under Section 33 of the Arbitration Act..

(2.) THESE appeals raise a common question regarding the interpretation of Clause 18 of the general conditions of contract contained in the standard form of contract entered into by the parties and the ambit and scope of Section 41 of the Arbitration Act. The facts giving rise to these appeals follow a common pattern and it would, therefore, be sufficient if we set out the facts relating to Civil Appeal No. 2863 of 1982 to bring out clearly the points which arise for consideration in these appeals.

(3.) THE appellant, however, failed to supply the books. THE contract was cancelled an 28th of August, 1974 at the risk and cast of the appellant THE DGS and D claims to have made risk purchases incurring an extra cost of Rupees 92,364/-. By notice dated 27/12/1974 the DGS and D called upon the appellant to pay that amount failing which alternative arrangements would be made to recover the same.