LAKSHMI ICE FACTORY Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal is by special leave granted by this court from an appellate judgment and order of the High court of Jammu and Kashmir staying a suit filed by the Lakshmi Ice Factory for a declaration that the union of India was not entitled to recover Rs. 35,210. 21 from the plaintiff or its partners and for a decree for Rs. 10,000. 00 against the Union of India for balance of price of ice supplied by the plaintiff etc.

(2.) The dispute between the parties arose out of a contract for supply of ice by the appellant to the Union of India and the latter made a claim against the plaintiff for failure to supply the ice in terms of the contract and damages suffered as a result thereof. There was a reference to arbitration under S. 20 of the Arbitration Act in terms of an arbitration clause contained in the contract. The award which followed was challenged by the appellant and was set aside by a single Judge of the Jammu and Kashmir high court. The appellant then instituted the suit referred to above. A single Judge of the High court rejected an application under S. 34 of the Act preferred by the respondent but this order was set aside by the appellate bench.

(3.) It appears that no proper steps were taken in the prosecution of appeal to this court by special leave and on his own application one mr. Bansi Lal Sharma was allowed to be impleaded as appellant No. 2. At the hearing of the appeal on 25/08/1969 the claim of the Union of india for Rs. 35,210. 21 as also that of the appellant for Rs. 10,000. 00 were by agreement of parties referred to the sole arbitration of Mr. Bishan narain, a Sr. Adv. of this court. After hearing the parties at some length, the arbitrator made his award whereby he found that the defendant was not liable for any amount exceeding Rs. 17,110. 32 and the plaintiff was entitled to recover Rs. 970. 00 as refund of the security deposit and rs. 2,256-79 as price of ice supplied by Lakshmi Ice Factory during the month of June, 1953 i. e. a total of Rs. 3,226.79.