NEW MODEL INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The Award was made on 19th August, 1991 whereby Rs. 12,17,405.00 (Rs. twelve lakhs seventeen thousand four hundred Five only) had been awarded to the respondents, (U.O.I.) D.G.S. & D., New Delhi towards their claim for the price of seven chassis supplied to them by the respondents for fabrication of Milk Vans. However, their claim for interest at the rate of eighteen percent per annum as well as for Rs. 5,00,000.00 towards general damages was rejected. The Objectors, who were also Claimants before the Arbitrator, had claimed a total sum of Rs. 39,27,720.00 + Rs. l,21,800.00 + Rs. 7,56,000.00 + 82,700.00 + Rs. 10,000.00 . i.e. Rs. 48,98,220.00 (Forty eight lakh ninenty eight thousand two hundred twenty only). The facts of this case are that the Objectors had entered into a contract with the respondents for the fabrication of twenty six Insulated Milk Van bodies on Tata and Ashok Leyland Chassis. These chassis had been purchased by the respondents and had been delivered to the Objectors for fabrication. The first lot of eight Vans were duly fabricated on 17.2.1997 and thereupon eight more chassis were delivered to them and these were also duly fabricated albeit after some delay. Thereafter, it appears that ten more chassis were delivered to the Objectors, the fabrication of which was inordinately delayed. The delivery period appears to have been extended from time to time but only three more were supplied to the respondents for fabrication by the Objectors. The remaining seven chassis were not returned to the respondents. The contract was eventually cancelled on 29.1.1982. The respondent's request for the return of these seven chassis was not complied with. This narration of the facts which had not been disputed by either party.

(2.) Objections against this Award were filed on 28th November, 1995 by Shri G.N. Aggarwal, learned Counsel for the Objectors. A counter affidavit was filed on behalf of the respondents on 6.8.1996 which contained the following averments : That the objection raised by the judgment debtor relates to Award dated 20.8.1991 subject matter of Suit No. 3885/92 which pertains to Contract No. SVI/204/129/ 23-11-76/204/195/24-2-77/71/NMI/019/PAOD, dated 13.4.1977 and Award published on 20.8.1991 through Arbitrator Shri C. Achutan, Additional Legal Adviser for Rs. 30,78,177.00 in favour of Union of India and same made Rule of the Court, vide judgment dated 19.9.1994 by Hon'ble Mr. Justice R.C. Lahoti.

(3.) That no objection has been raised regarding the present Suit No. 3875/92 which pertains to Contract No. SVI/222/71/210/22-3-75/324/PAOD dated 8.9.1975 and Award published through the Arbitrator Shri C. Achutan, Additional Legal Adviser, for Rs. 12,17,405.00 on 19.8.1991 and same made rule of the Court vide judgment dated 14.9.1993 by Hon'ble Mr. Justice Mahinder Narain and same matter is now pending before this Hon'ble Court for setting aside the Award. As such, the application for setting aside the Award does not arise. In fact, no objection filed regarding Suit No. 3875/92 which is made Rule of the Court on 14.9.1993 by Hon'ble Mr. Justice Mahinder Narain.