HINDUSTAN AERONAUTICS LIMITED REP Vs. COMPAIR

JUDGEMENT

(1.) THE appellant in these appeals hired a IBM/370/138 computer from 9 -4 -1986 under leasing agreement dated 2 -5 -1986. Under the said agreement, the respondent had agreed to replace the computer by a IBM/370/158 computer after initial period of 4 months. There was delay in replacing the computer and Appellant continued to use the IBM/370/138 system awaiting replacement and continued to pay the rentals. Ultimately, the IBM/370/138 computer was replaced on 5 -10 -1987 by an IBM/370/158 system and a Second agreement dated 5 -11 -1987 was entered between the parties covering the leasing of the IBM/370/158 computer for a period of one year from 5 -10 -1987. The first leasing agreement relating to IBM/370/138 computer came to an end from the. date of leasing of the IBM/370/158 computer from 5 -10 -1987.

(2.) UNDER the agreement dated 5 -11 -1987, the appellant (hereinafter also referred to as HAL ) had agreed to pay a hire charge of Rs. 1,15,000.00 per month For the IBM/370/158 computer to the respondent (hereinafter also referred to as Compare). The said computer ceased to function, on 27 -4 -1988. It was repaired by the respondent and again become functional on 12 -6 -1988. By notice dated 27 -7 -1988, the appellant informed the respondent that the lease or hiring will not be extended on the expiry of the lease period on 4 -10 -1988. In view of the determination of the lease by efflux of the lease period, the respondent had to take back the computer on 5 -10 -1988. The respondent did not however take back the computer on 5 -10 -1988, but after some correspondence, took back the computer only on 4 -2 -1989.

(3.) BEFORE the arbitrator, respondent filed its claim statement praying as follows: 'In the circumstances, the petitioner prays that an award may be passed for a total sum of Rs. 57,93,264.00 along with interest at 18% p.a. during the pendency of the arbitration proceedings, till payment thereof and further order payment of Rs. 1,15,000.00 per month from the 19th of March 1990, till the respondent pays Rs. 17,50,000.00 or returns the books held by it and pays the erection, testing and commissioning charges, valued at Rs. 1,50,000.00 and if the computer is not in order, pays value thereof at Rs. 17,50,000.00. Interest on all these amounts costs, including cost of arbitration and such other reliefs as this Hon'ble Authority may deem fit in the interest of justice.'