SARAYA DISTILLERY Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS appeal is directed against the judgment of alearned single Judge of this court dated September 21, 1979. It was dismissed by us by means of a short order dared February 27, 1984. Now we proceed to give reasons for the said decision.

(2.) M/s Saraya Distillery, the contractor agreed to supply 3, 87, 666 litres of rum to the respondent-Union of India@ Rs. 2. 13 per litre vide agreement dated August 14, 1972. The stores were to be delivered in 5 instalments-90,000 litres rum by 21-9-1972, 90,000 litres rum by 21-10-1972, 90,000 litres rum by 21-11-1972 80,000 litres rum by 21-12-1972, and 37, 666 litres rum by 21-1-1973. The contractor supplied only 45,000 litres of rum out of the first lot. He failed to supply the remaining stores inspite of extension of time on his request and and thus committed a breach of the contract.

(3.) IT was pointed out that Shri Krishan Goyndoya was not in Gorakhpur and thus there was no evidence to prove the price prevalent at Gorakhpur The arbitrator in the absence of any evidence regarding the prevalent price at Gorakhpur could take into consideration the market price at the nearest place.