DILIP CONSTRUCTION COMPANY Vs. HINDUSTAN STEEL LTD

JUDGEMENT

(1.) THIS is an appeal under Section 39 (1) (vi) of the Arbitration Act, 1940, preferred by M/s. Dilip Construction Co. from an order of the District Judge, Durg at Rajnandgaon, setting aside an award of the umpire in its favour, directing the payment of a sum of Rs. 8,65,000/- by the Hindustan Steel Ltd.

(2.) THE material facts, shortly stated, are these. By a contract dated 26th February, 1960, the appellant was employed by the respondent for winning and raising 45,00,000 Cft. of BF grade lime-stone ore from its Nandini Mines, and for transporting and loading the same into wagons at the railway siding of the mines. The deed of contract contained an arbitration clause, and it reads thus:

(3.) THE arbitrators named by the parties appear to have entered upon the reference despite the protest of the respondent. They could not arrive at an agreement and appointed one P. N. Saxena to be the umpire. That is how the matter reached the umpire. By an award dated 10th April, 1967, the umpire directed the respondent to pay to the appellant a sum of Rs. 8,65,000/- in full and final settlement of its claim. On 1st May, 1967 the appellant presented an application under Section 14 (2) of the Arbitration Act, for the filing of the award and to have the award made a rule of the Court. The learned District Judge directed the umpire to file the award. On the award being filed, the respondent made an application under Sections 30 and 33 of the Act for setting aside the award on the grounds that, the award had ignored the terms of the contract and was as such bad on the face of it; that not being based on evidence, it was a nullity and was, therefore, liable to be set aside in its entirety.