FOOD CORPORATION OF INDIA Vs. VEERI NAIDU

JUDGEMENT

(1.) THIS appeal under Sec. 39 of the Arbitration Act is against the common judgment and decree in 0 S 270/ 1977 and 0. P. 14/1978 on the file of the Principal Sobordinate Judge, Visa- khapatnam. The appellant is the 1st defendant in 0 S 270/1977 and the petitioner in O P 14/1978. O S 270/ 1977 is filed by the Plaintiff to pass a decree against the defendants directing the arbitrator, the 2nd defendant, to file the award and to direct the payment by the 1st defendant of Rs. 2, 78, 065-64 and Rs. 110/- towards costs (excluding Rs. 65,000/- already paid) as per award with interest thereon at 18% p a. from the date of the award or filing the petition till date of payment as per the bank rate and for costs of the suit.

(2.) THE averments as stated in the plaint in 0 S 270/77 are as follows: - THE plaintiff was a transport contractor who did transport work for the Food Corporation of India, the defendant at Visakhapatnam. In view of certain disputes the matter was referred to arbitrator appointed by the Food Corporation of India according to the terms of the contract. Sri A G Nambiar was appointed as sole Arbitrator and the- award was passed by the Arbitrator on 28-10-1977 and intimated the same bv registered notice dated 28-10-1977 which was received by the plaintiff on 1-11-1977. THE plaintiff wrote a letter to the Arbitrator requesting him to present the award to the Court. THE Arbitrator decided that the petitioner is entitled to a sum of Rs 3,43,065.-64 and an amount of Rs. 110/- towards costs and out of which Rs. 65,000/-was already paid by the 1st respondent as per the interim award. THErefore a sum of Rs. 2,78,065.64 and Rs. 110/- to wards costs are still due to the plaintiff. In spite of the award passed by the Arbitrator and a copy of the same was sent to the 1st defendant, the balance amount was not paid.

(3.) ON the basis of these pleadings, the following issues were framed:-