UNION OF INDIA (UOI) Vs. KASHIND ROLLER FLOOR

JUDGEMENT

(1.) THE present appeal is directed against the order dated 01.11.1999 passed by the learned Single Judge whereby the appellant 's application being I.A. No. 10658/98 under Section 34(3) of the Arbitration and Conciliation Act (the Act) seeking condonation of delay in filing objections (under Section 34 of the Act) to the arbitral award dated 21.05.1998 has been dismissed, and consequently OMP No. 267/98 being objections under Section 34 of the Act have also been dismissed.

(2.) THE award itself records that the parties agreed that the proceedings to be treated as under the Act.

(3.) THE respondent was engaged as a milling contractor for conversion of wheat into atta, flour, suji and gram by the appellant vide agreement dated 2.8.1991 for a period of three years w.e.f. 30.11.1991. A large quantity of brans, jute bags and gunny wrappings in which wheat was being supplied and its products was to be packaged was supplied to the respondent. These got accumulated at the respondent 's premises for which the respondent was made responsible under Clause 9(a) of the agreement. The appellant was not taking back these bags and it continued to remain stored at premises of the respondent. Despite repeated notices, these bags were not taken back. Evidently, the respondent disposed of these bags. The appellants made a claim towards cost of the bags for Rs. 33,28,934/ -. The learned Arbitrator after taking note of the notices sent by the respondent calling upon the appellant to remove the bags lying at their mill and the fact that these bags were disposed of for Rs. 1,33,600/ - by the respondent, allowed the claim of the appellant only to the extent of Rs. 1,33,600/ -. The following counter -claims of the respondent were also allowed: