BHARAT ALUMINIUM COMPANY LTD Vs. LAXMI TRANSPORT

JUDGEMENT

(1.) This appeal is preferred under Section 39 of the Arbitration Act, 1940 against the order dated 30-6-2003 passed by Second Additional District, Judge Korba, in case No. 4-A/2002 wherein the said court awarded the amount in favour of respondent to the tune of Rs.1,39,760/- with interest.

(2.) Appellant awarded annual rate contract to the respondent for transportation of 4 numbers of rectiformers from Bharat Aluminium Co. (BALCO) Korba to Bharat Heavy Electricals Limited (BHEL) Jhansi and back under tender No. AV/CCE/E/91-92/88 dated 30-3- 1993 on terms and conditions as contained in tender notice, instructions to tenderers, special terms and conditions of contract, letter of acceptance, general conditions of contract and all other documents forming part of the contract. The contract among other terms contained a clause for settlement of disputes between the parties through arbitration. The purpose of transportation of rectifier transformers was for their repairs at BHEL, Jhansi during the currency of the contract. Looking to the size and weight of these rectiformers, their transportation by road was possible by truck/trailor having minimum load bearing capacity of 50 tonnes or more. As per condition 14 of the contract, appellant does not guarantee any specific quantity of regular flow of work and the work involved either partially/fully be stopped/decreased or increased and the contractor will have to maintain the labour force accordingly without causing any interruption/stoppage of work so assigned. BALCO will not pay any idle labour charges. BALCO had also reserved the right to reduce the number of trips without any reason. It so happened during the contract period no rectiformers developed any defect which would call for their repairs at BHEL's work shop, Jhansi and therefore, the appellant could not make any rectiformer available to the respondent for transportation.

(3.) The respondent submitted its tender claiming itself to be highly reputed firm owing several cranes, heavy motor vehicles, heavy trailors, road rollers etc., with experience of transportation of heavy machineries. The respondent claimed that as it was not provided rectiformer for transportation, he treated it as breach of contract and claimed for damages. The matter was referred to Arbitration. Shri SS Shrimalai and Shri C.L. Rawal, the officers of BALCO were appointed as Arbitrators. The arbitrators awarded Rs.1,39,760/- towards idling and equipments including heavy duty trailors and man-power. They further awarded Rs.33,552/- towards interest @ 12% per annum, thus total amount comes to Rs.1,73,302/-. The appellant filed an application under Section 30 / 33 of the Arbitration Act, 1940 before the Court of Additional District Judge to get the award set aside, but same was rejected that is why this appeal is preferred.