JONES AND WEXOES INDIA Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition under Sections 5, 11, 12 and 33 of the Arbitration Act, 1940, the applicant/petitioner prays that for the reasons stated in the application leave be granted to revoke the authority of respondent No. 3 Dr. B.N.Mani, as sole arbitrator, and it also be declared, that arbitration agreement and the reference to the arbitrator have ceased to exist and have no effect.

(2.) THE facts alleged in the petition are that a contract for the supply of 10384000 tablets of Sulphasomidine-500 mg. was entered into between the parties on 14-8-1980. THE total amount of the contract was Rs. 882121.00 . THEm was some modification of the contract according yo which the quantity of the tablets to be supplied was- raised to 12814000 and the amount to, Rs. 1088549.88.

(3.) COUNSEL for the Union of India has referred to AIR-1978 NOC- Delhi 214 which is also a Division Bench judgment of this court in which it is stated in the head notices that "delay by itself would not be enough to hold that the arbitration agreement has come to an end on that arbitration agreement on that count has to be cancelled though it may be a relevant factor, may, an important circumstance, in conjunction with other circumstances to arrive to a conclusion whether the arbitration agreement be cancelled or not."