AMAR INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) IA No.10046/1994 (u/S 30 and 33 of the Arbitration Act, 1940) The petitioner has filed objections under the provisions of Sections 30 and 33 of the Arbitration Act, 1940 (hereinafter referred to as the said Act), in respect of the award dated 19.1.1994 of Shri Ram Bahadur, the Sole Arbitrator.

(2.) The dispute relates to the Rate Contract dated 29.12.1988, which was valid for a period from 20.8.1988 to 15.12.1989. Clause 4 of the Rate Contract prescribe the said period while Clause 5 prescribe the period upto which the requisitions under the Contract could be placed on the petitioner, who was granted the Rate Contract by the respondent. In terms of the Clause 5 such requisition has to be placed so as to reach the Contractor on or before the last date of the currency of the Rate Contract.

(3.) There were certain amendments in the price issued on 20.3.1990 but that would not be relevant in the present matter. The sub-stratum of the disputes relates to the communication dated 5.2.1990 extending the validity period of the Rate Contract up to 15.3.1990. This is so since a purchase order was placed on the petitioner on 20.3.1990 referring to the telegraphic advance acceptance of the supply order on 13.3.1990. The petitioner took the stand that the supply order had been placed beyond the period of the Rate Contract and thus the petitioner was not bound to make the supplies. Risk purchase was made at the risk and cost of the petitioner. The sole sub-stratum of the submission of the learned counsel is that at no stage of time petitioner had consented to the extension of the Rate Contract up to 15.3.1990. On perusal of the records of the Arbitration, I find that a letter dated 16.12.1989 issued by the petitioner is on record. The same is in the following terms: