UNION OF INDIA Vs. NEW SWADESHI SUGAR MILLS

JUDGEMENT

(1.) THE subject matter of objections raised by the defendant/respondent in this case is an award passed by the Learned Arbitrator on 6 th August, 1980 whereby he awarded a sum of Rs. 5,06,918/- to the plaintiff/petitioner. The award of the Learned Arbitrator is a short award and the relevant portion is reproduced below:

(2.) IT is also argued that the Arbitrator had not taken into account the fact that even during risk purchase the petitioner had procured only 100 metric tonnes of potatoes against the short supply of around 500 metric tonnes and the arbitrator could have awarded only the difference in the cost of 100 metric tonnes.

(3.) THE contract would show that the respondent had contracted for supply of 850 metric tonnes of potatoes (700 metric tonnes tinned potatoes and 150 metric tonnes other potatoes ). The respondent failed to supply 445 metric tonnes of tinned potatoes with the result that the petitioner had to cancel the order at the risk and cost of the respondent. The price quoted by the respondent for tinned potatoes was Rs. 3. 43 per kg. The petitioner had retendered for procuring the balance quantity. After cancelling of the contract by the petitioner and the price quoted in retender was higher than what was the earlier price and even the respondent had also participated in retender and quoted Rs. 1 per kg. more than the earlier price.