BINANI METALS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE arbitrator Shri R.N. Mishra has made and published the award on October 29, 1986. By means of I.A. No. 3023/87 this award has been challenged by the petitioner.

(2.) ON May 12, 1966, M/s. Metal Distributors Limited and respondent No. 1 entered into an agreement by virtue of which Metal Distributors Limited was to supply tin ingots to respondent No. 1. M/s. Metal Distributors Limited, pursuant to the scheme of amalgamation and the order dated November 23, 1983 of the Calcutta High Court and order dated October 26, 1983 of the Bombay High Court, was amalgamated with the petitioner M/s. Binani Metals Limited. Due to the disputes between the petitioner and respondent No. 1 the matter was referred for the adjudication of the above said arbitrator on a direction from this Court under Section 20 of the Arbitration Act. The arbitrator, as pointed out above, made and published his award on October 29, 1986. The award has been challenged by the petitioner on the ground that the arbitrator misconducted himself and the proceedings. The main dispute between the parties was with regard to the claim of the petitioner based on Condition No. 8 of the Special Conditions submitted by it along with the tender dated March 17, 1966. Invoking the special condition No. 8 the petitioner claimed a sum of Rs.1,27,903.15 on account of increase in the rupee value of the costs of goods due to devaluation. The Arbitrator came to the conclusion that Condition No. 8 of the Special Conditions was not accepted by respondent No. 1 and was not an integral part of the agreement between the parties. In coming to this conclusion the arbitrator relied upon the advance acceptance of tender issued by respondent No. 1 on March 18, 1966. The arbitrator noted that respondent No. 1 by the advance acceptance of tender accepted the Special Conditions No. 6 and 7 of the tender document, but in so far as Condition No. 8 was concerned there was no reference to the same. In this regard, the arbitrator stated as follows :-