OMVIK ELECTRONICS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) M/s. Omvik Electronics (here in after referred to as a 'Contractor') which is a private limited company mcorporated under the Indian Companies Act, 1956 having its registered office at 4/276, Parbati Bagia Road, Kanpur. entered into a contract dated 5th November, 1976 with Union of India through the Director General of Supplies and Disposals, New Delhi for supply of 440651 shoulders and 495196 collars. According to the agreement the contractor was to be paid 95% of the price against the supply of goods from time to time and the balance of 5% was to be paid on supply of the entire quantity. Office of the Director General of Supplies and Disposals withheld a sum of Rs. 73,946.00 from the bill of the petitioner against the 95% of the payment due to alleged reduction in rates and did not pay the balance 5% although the whole of the contracted shoulders and collars had been supplied. Disputes arose between the parties in respect of the withholding of the afore- said payment. In accordance with an arbitration clause in the Agreement Director General of Supplies and Disposals appointed Shri Bakshish Singh, Additional Legal Adviser to the Government of India as Sole Arbitrator. Contractor filed a claim for recovery of Rs. 73,946 in respect of withholding of the amount from his 95% bill and for recovery of Rs. 62,521.45 for balance of 5% of the bill. Arbitrator gave an award dated 30th December, 1978 to the effect that Union of India shall pay a sum of Rs. 62,521.45 to the contractor and that the remaining claim of the contractor shall stand dismissed.

(2.) THE contractor brought a petition under Section 14 of the Arbitration Act on 12th January, 1979 which was registered as Suit No. 88-A of 1979. He prayed for directing the arbitrator to file the award along with the proceedings taken by him. Accordingly the award was filed and notices of the filing of the award were given to the contractor as well as to the Union of India. THE contractor filed objections on 16th May, 1979 which were registered as I.A. No. 2480 of 1979.