BIRLA CEMENT WORKS Vs. UNION OF INDIA

JUDGEMENT

(1.) The respondent No.l through respondent No.2 entered into a rate contract with the petitioner for the supply of cement to all the Government and quasi-Government bodies against supply orders placed by them from time to time. The aforesaid rate contract contained an arbitration clause being clause No.25 of the contract between the petitioner and respondent No.l. In respect of the execution of the aforesaid contract disputes arose between the parties which in terms of clause 25 of the agreement was referred to the sole arbitration of the respondent No.3.

(2.) The arbitrator appointed was The Additional Legal Advisor to the Government of India, Ministry of Law and Justice, Department of Legal Affairs. After entering upon the reference the arbitrator issued notice to the parties and after hearing the parties and perusing the pleadings and documents filed and relied upon by the parties made/published his award on 30.5.1991. In the said award the arbitrator held that the petitioners are entitled to an amount not exceeding Rs.2,62,033.00 which has been actually paid by them by way of interest to the Sales Tax Authorities, subject however, to the condition of submission of a statement duly certified by their statutory Auditors showing the actual amount paid by way of interest on the element of freight on the supply of stores made by petitioners to the respondents, in terms of the contract. The arbitrator, however, rejected the claim of the petitioner in inspect of payment of interest.

(3.) On publication of the aforesaid award the petitioner filed the present petition seeking for filing of the award in this court. On notices having been issued on the said petition the arbitrator, respondent No.3 filed the award in this court in orinal alongwith the records of the arbitration proceedings. After filing of the award both the petitioner and the respondents have filed their objections to the award within the statutory time limit. The objections filed by the petitioner were registered as I.A.No-2005/1993 and the objections of the respondents were registered as I.A.13139/1992. The objections raised by the petitioner relate to rejection of the claim of the petitioner in respect of claim for payment of interest on the amount of Rs.2,62,033.00 which stood awarded to the petitioner under the award. The objections of the respondent on the other hand relate to the award passed by the arbitrator awarding in favour of the petitioner an amount of Rs.2,62,033.00 which had been actually paid by them by way of interest to the Sales Tax Authorities subject to submission of the certificate to the respondents as indicated therein.