UNION OF INDIA Vs. COMMERCIAL METAL CORPORATION

JUDGEMENT

(1.) On 15th January, 1972 the petitioner, Union of India, entered into a contract of purchase of stores with the respondent. Commercial Metal Corporation (the Corporation). The stores to be supplied to the Union were leaded bronze ingots. 200 metric tonne of these ingots were to be delivered. The Corporation supplied 1,63,020 metric ton. They failed to supply 36,980 metric ton. The last date for delivery was 31st January, 1973. The delivery period was extended from time to time. Finally the Union of India cancelled the contract on 15th February, 1975.

(2.) Disputes arose between the parties. There was an arbitration clause in. the contract. The matters in difference were referred to the arbitrator. The Union Of India made a claim for Rs. '3,28,258.86 on accouut of general damages against the Corporation for non-delivery. The Corporation in its turn made a counter claim against the Union of India. The arbitrator heard the parties. On 28th March, 1980 he made and published the award. He awarded a sum of Rs. 2,36,494 to the Union of India on account of general damages. The claim of the Corporation he rejected. He allowed them only Rs. 1,399 on account of sales tax charges. After making adjustment of the said amount he directed the Corporation to pay to the Union of India Rs. 2,35,095. This was his award.

(3.) The award was filed in court. The Corporation raised objections to the award. On their objections the following issue was framed :