SARDAR PREM SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner which is a proprietorship concern carrying on business of manufacture and sale of furniture and furnishings has moved this application under Section 14 (2) read with Section 17 of the Arbitration Act, 1940 for directions to respondents No.3 & 4 to file the award dated 30.10.2002 and for making the award a Rule of the Court. The award has, however, been filed and now the question is of making the award a rule of the Court. The respondents no.1 & 2 have filed their objections under Section 30 & 33 of the Arbitration Act, 1940 in respect of the award in the form of IA No.6312/2003.

(2.) The respondent No.2 had advertised for pre- qualifications of contractors for manufacturing, supplying of furniture and other interior decorations works. The petitioner submitted its tender for the above works. His tender was accepted by respondents No.1 & 2. The petitioner also submitted three bank guarantees for an amount of Rs.9.73 lakhs. However, subsequently certain disputes arose between the petitioner and the respondents No.1 & 2 resulting in the termination of the contract on 11.5.1990 by the respondents. The respondents are stated to have the balance portion of the contract completed by some third party. It is alleged by the petitioner that on the date on which the contract was terminated there were several items, a list whereof is filed along with the objections as Annexure 'A' to the objections, belonging to the petitioner which were left at the premises of the respondents No.1 & 2.

(3.) Since disputes had arisen between the petitioner and the respondents No.1 & 2 the same were referred to arbitration. The petitioner being the claimant had filed its claim which was sub-divided into claim Nos.1 to 5. The respondent also filed its counter claim. The said claims and counter-claims were the subject matter of arbitration before the arbitrators (respondents No.3 & 4) who were officers and employees of respondent No.1. After considering the entire evidence on record and arguments advanced by the parties the arbitrators made the award dated 30.10.2002 which is the subject matter of the present petition. All the claims of the petitioner except claim No.4 have been disallowed. The counter claim of the respondent has also been disallowed. Mr.Jagjit Singh, who appears for the respondents No.1 & 2 submitted in support of his objections that the award was liable to be set aside on three counts. The first ground being that the claim filed by the petitioner did not have any specific claim for interest nor was there any such reference to arbitration, yet the arbitrators have allowed interest to the claimant/petitioner. The second point that was urged by Mr.Jagjit Singh was with regard to claim No.4 which has been granted to the petitioner. This is in respect of the value of materials which were left by the petitioner and which were re-tendered by the respondents No. 1 & 2. According to Mr.Jagjit Singh, the said items were as per annexure 'A' to the objections filed by them and the same had been re-tendered to the third party who had been awarded the balance work and the amount of the re-tender in respect of these items was Rs.2.73 lakhs. He has further submitted that the arbitrators did not take this value of Rs.2.73 lakhs but have awarded a higher value of Rs.4,09,500/-. According to Mr.Jagjit Singh, this enhancement is purely arbitrary and without any basis. He he drew my attention to the award and in particular where it is stated as under:-