P R TRADING CO Vs. UNION OF INDIA

JUDGEMENT

(1.) A contract was placed by the respondent, Union of India on the petitioner for supply of umbrellas in pursuance to letter dated 18.12.1984. The petitioner failed to deliver the goods and thus the risk purchase was made by the respondent at the cost of the petitioner. The respondent claims a sum of Rs.1,25,051.34 towards risk purchase. It may be noted that an amount of Rs.62,525/- of the Petitioner has been retained by the respondent but arising from some other contract because of the failure of the petitioner to supply the goods in respect of the present contract.

(2.) In view of there being an Arbitration Clause as per the general terms and conditions of the contract, the Director General (SandD), Department of the Union of India, appointed the Arbitrator to adjudicate upon the disputes between the parties.

(3.) Initially the Competent Authority of the respondent appointed Shri R.K. Gupta, Additional Legal Adviser of the Government of India as an Arbitrator, who made and published in award dated 22.6.1990 allowing the claim of the respondent for risk purchase to the extent of Rs.35,527/-. The same was challenged by the Union of India on the ground that the claims being more than Rs.1,00,000/-, the Arbitrator was to give a reasoned award. The objections of the respondent succeeded and by an order dated 22.4.1996 of this Court, the award was set aside and the matter was remitted back for Arbitration.