UNION OF INDIA Vs. MODERN LAMINATORS LTD

JUDGEMENT

(1.) THE Union of India (Railway Board) has preferred this petition under Section 34 of the Arbitration Act, 1996 for setting aside of the award No.ARB/AKG/RB/ML/GKP dated 20th December, 2004 of Shri A.K. Goel, Chief Materials Manager, Northern Railway, New Delhi acting as the sole arbitrator appointed under the terms of the agreement between the parties.

(2.) THE undisputed facts are that the Railway Board placed a supply contract on the respondent for textile material. Out of the material supplied by the respondent under the said contract at several Railway Depots, one of depots rejected certain quantities of white cloth stating that the material was inferior in quality and withheld the payments therefor.

(3.) THE petitioner / objector contested the claim. It was not disputed that the rejected cloth was not available in the thaan form and was available only in cut pieces or stitched form. It was contended that the goods being not as per the order, the price thereof was not payable. The petitioner/objector also made a counter claim as under: (i) Towards ground rent for storing the rejected goods : Rs 7,355/- till 22nd August 2003 and of Rs 5 per day till the lifting of the rejected goods; (ii) Towards cutting and stitching charges: Rs 2,11,445/-.