GOUNDER AND COMPANY Vs. B S HEGDE

JUDGEMENT

(1.) IN these two appeals, three matters are in dispute. The appellant entered into contracts with the 2nd respondent for the purpose of handling and transporting goods at the Coimbatore Main Depots of the 2nd respondent and the Sub-depots around Coimbatore City for the period 16-11-1978 to 15-11-1980. As some disputes arose between the Parties regarding the claims made by the appellant, the matter was referred to arbitration.

(2.) THE arbitrator accepted the claims made by the appellant to some extent and passed an award. THE appellant filed Original petition for filing the award into Court and for passing a decree in terms of the award, while the 2nd respondent filed a petition for setting aside the award. Both the petitions were heard together by a learned Judge of this court, who set aside the award of the arbitrator with reference to three matters and confirmed the same in other respects. THE three claims, with regard to which, the award has been set aside, are referred to, for the sake of convenience, as claim Nos. 3, 8 and 14. We will deal with Claim No. 3 at the end as it relates to a large amount.

(3.) THE learned Judge dealing with this aspect of the matter of the claim, in paras 9 and 10 of his judgment, found that the arbitrator had himself categorically held that the recovery of demurrage charges by the District Manager was in accordance with the terms of the contract and therefore, the matter was beyond dispute because of the provisions in Clauses 12 (a) and (b ). THE learned Judge has referred to sub-clause (b), which enables the 2nd respondent to reimburse itself of any damages, loss, charges, etc. incurred by them due to the Contractor negligence or default. THE learned Judge has expressed the view that the arbitrator having found that the contractor was liable for negligence, ought not to have directed the 2nd respondent to refund any amount, which had already been deducted by way of demurrage charges on the footing that it was in excess of one half of the total demurrage. We do not find any error whatever in the reasoning adopted by the learned Judge. He was perfectly justified in interfering with the award passed by the arbitrator in this regard.