SHARMA TIMBER WORKS Vs. UNION OF INDIA

JUDGEMENT

(1.) JUDGEMENT J.-

(2.) THE petitioner, M/s Sharma Timber Works, have filed this petition under Sections 8 and 20 of the Arbitration Act stating that contract No. A/T.No.TP-/Timber/Assam/Pricing/79-83/577/PAOC dated 3rd February, 1981 was entered into between the petitioner and the respondent and by virtue of the said contract, the respondent had initially placed an order for supply of 1200 cubic meters of hard wood but the demand was later on raised to 1500 cubic metres of the value of Rs. 14,98,500i- and that though the petitioner was exempted from furnishing the security, the respondent firstly imposed a security of Rs. 59,240.00 and latter on enhanced the amount to Rs. 74,9251.00- vide latter dated I8th April, 1981 and after wasting good period, the respondent reduced the security amount to Rs. 30,000.00 vide letter dated 24th August, 1981 with the result that there was delay in performance of the contract. It has also been stated that the respondent committed further breaches of the contract and also caused commissions and commissions by delaying the payments and delaying the return of inspection copy Nos. 2 and 5 to receive his full payment but in spite thereof, the petitioner executed the order for very substantial quantity and submitted its bill but the respondent kept additional sum of Rs. 30,000.00 with the result that a sum of Rs. 60,000.00 was kept towards security by the respondent. It is also alleged that the respondent failed to make payment in the sum of Rs. 1,63,191.52 towards the balance price and Rs. 21, 304.00 towards the 10% besides retaining the above said amount of Rs. 60,000.00and as such a sum of Rs. 2,44,495.50 was due to the petitioner from the respondent. THE petitioner also claimed interest at the rate of 21% p.a. on the above said amou beside claiming damages to the tune of Rs. 1,00,000.00 on account of losses sufferred by the petitioner due to the breaches committed by the respondent. It has been alleged that the petitioner had called upon the respondent vide notice dated 6th January, 1986 to pay the amount or to refer the matter to arbitrator in terms of the arbitration clause contained in the contract between the parties but the respondent neither paid the amount nor referred the matter to arbitration.Hence this petition. It has thus been prayed that the arbitration agreement between the parties be filed in court and the disputes be referred to arbitration. THE petitioner also prayed that the cost of the petition be also awarded to him.

(3.) THE petitioner has filed affidavit dated 5th September, 1986, sworn by Mr. U.S. Khandelwal, one of the partners of the petitioner firm. In this affidavit it has been stated that the notice dated 6th January, 1986 was served on the respondent vide receipt dated 8th January, 1986. THE copies of the notice and of the receipt have been attached with the affidavit. THEre is no evidence in rebuttal. 1 have therefore, no reason to disbelieve that the notice dated 6th January, 1986 was delivered at the office of the Directorate General of Supplies and Disposal on 8th January, 1986.