KULBIR SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal is directed against the common order dated 4th July, 1995 passed by the learned Single Judge in I-As. 6511, 6588/1985 and Suit No. 1627/1985, disposing of the aforesaid proceedings declining to modify the order dated 7-10-1986 passed in Suit No. 1627/1985 and maintaining the decree passed therein and further holding that the decree would be available for execution only against the Hind Cycles Ltd., the company.

(2.) Hind Cycles Ltd. was a company incorporated under the provisions of Indian Companies Act. With regard to the conduct of the business of the said company, the Central Government conducted an investigation as provided for under Section 15 of the Industries (Development and Regulation) Act, 1951 (hereinafter called the "Act of 1951"). On completion of the investigation and having formed an opinion thereafter that it was being managed in a manner highly detrimental to public interest, issued a notification on 3rd January, 1974 in exercise of the powers conferred by clause (b) of subsection (1) of Section 18A of the said Act authorising a body of persons to take over the management of the whole of the said undertakings namely, M/s. Hind Cycles Ltd., Bombay. In the aforesaid notification dated 3rd January, 1974, it was stipulated that a body of persons authorised by the said notification would take over the management of M/s. Hind Cycles Ltd. and that the said Board of Management shall hold office for 5 years from the date of publication of the order in the Official Gazette and that the said Board shall comply with all the directions issued from time to time by the Central Government. Subsequently by another notification dated 26-12-1978 the life of the order dated 3-1-1974 was extended up to 2nd January, 1981.

(3.) The appellant decree-holder entered into an agreement with the Company on 28-11-1975, whereby he was appointed an agent of the Company for the sale of cycles and cycle parts manufactured by the Company in Iran. By virtue of the aforesaid appointment and according to the terms of the agreement, he was entitled to commission on such sales. The appellant carried on the business of sale of cycles and cycle parts manufactured by the Company in Iran during the period from 16-11-1975 to 16-11-1978. However, in spite of the stipulation made in the agreement, the appellant was not paid his commission on account of which he made a claim for payment of such commission with interest. On failure to pay such commission with interest, the appellant invoked the arbitration clause and the same was referred for adjudication to Shri V. D. Misra, Arbitrator who gave an award on 30-8-1985. The claim of the appellant was against both M/s. Hind Cycles Ltd. and also Union of India who were arrayed as parties in the proceedings before the Arbitrator.