MANSUKH & CO. (OVERSEAS) Vs. UNION OF INDIA

JUDGEMENT

(1.) Certain disputes and differences having arisen between the parties in respect of the supply of stores by the petitioner to the respondent under a Supply Order No. 6151/2/83-84/PM-EDCP/89-RI'/85-86/30, dated 4th Nov., 1985. The Secretary to the Government of India by letter dated 16th Sept., 1993 nominated Lt. Col. Gurdial Singh, J.D. (OS), B.B.S. in the Ordinance Branch of Army Headquarters as the Sole Arbitrator to decide the disputes and differences between the parties so far as they were referable to arbitration under the Arbitration Agreement between the parties.

(2.) The Union of India filed it statement of claim before the Arbitrator Claiming that under the Supply order dated 4.11.1985 the stores were to be supplied upto 31.12.1985. However, at the request of the supplier the delivery period was extended to 2.0.1986. The stores were offered for inspection by the petitioner to the respondent and according to the respondent they were finally supplied in July, 1986. 95% payment of the stores was made by Union of India to the contractor and as the balance payment was not being made, the petitioner sought the matter to be referred to the Arbitrator. This is how the Secretary to the Government of India vide letter dated 16th Sept., 1993 referred the disputes to the Arbitrator for decision in accordance with law.

(3.) Union of India filed its statement of claim before the Arbitrator claiming inter alia that the supplier had completed supplies of the contracted stores during the extended delivery period and during this time there was reduction in the price of the stores and as such the respondent was entitled to recovery of a sum of 47,489 from the petitioner. The claim was, however, restricted to 34,002.80 p. as the respondent vide its letter dated 31st Oct., 1992 had allegedly regularised the delivery period upto 27th July,1986 subject to recovery of liquidated damages of 34,002.80 p.