UNION OF INDIA Vs. PANIPAT FOODS LTD

JUDGEMENT

(1.) The petition has been filed challenging the award dated 12th October, 2010 by which the claims of the Union of India were rejected by the learned Arbitrator.

(2.) The present petition has a chequered history. This is the second round of litigation between the parties. The Union of India had placed a contract for supply of peas on the Respondent contractor-M/s. Panipat Foods Ltd in 1978. According to the Union of India, the entire contracted quantity of peas which were supplied went bad during the warranty period of one year. The Petitioner had to lift back the quantity from its various depots across the country and finally had to bury the peas. Since the contractor failed to replace the peas and had received the full payment for the supplies made, the Union of India invoked arbitration. On the first occasion, award dated 28th June, 1999 was passed by which the claims of Union of India were accepted. The said award was then filed before this Court for being made rule of Court, however objections were filed by the contractor. This Court on 5th July, 2006, while accepting that the warranty clause applies to this supply, however, set aside the award on the ground that the test reports were not given to the contractor. The matter was then remanded vide order dated 5th July, 2006.

(3.) Subsequent to the remand, the matter was referred to a new Arbitrator. Paragraph 6 of the impugned award dated 12th October, 2010 records as under: -