PATKAI TIMBER INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner has filed objections to the award dated 23.8.1993 published by Shri K.D.Singh, sole arbitrator. As per the award, claims No.1, 2 and 4 of the petitioner have been rejected. Claim No.3 has been allowed. Counter claim of Union of India has been allowed. Amount awarded under claim No.3 has been set off against amount awarded under the counter claim.

(2.) Dispute between the parties surfaced as the petitioner failed to complete supplies under the contract between the parties and the respondent went in for a risk purchase. Petitioner had deposited Rs.25,000/- as security deposit which was forfeited by the respondent on account of risk purchase. Petitioner had a claim in the sum of Rs.20,063/- being the price for the goods supplied and unpaid for. Defence of the Union of India was that on part supply being effected, certain material was rejected. Rejection was intimated. Petitioner did not remove the rejected goods and did not replace the same and as a consequence, respondent did not effect payment. Further claim of the petitioner was in the sum of Rs.12,919.39 towards a bill dated 12.1.987.

(3.) Counter claim of Union of India, as noted above, was on account of risk purchase.