LAWS(MAD)-2007-6-333

D SHIVASHANKAR Vs. UNION OF INDIA

Decided On June 05, 2007
D. SHIVASHANKAR Appellant
V/S
UNION OF INDIA, REP., BY THE GENERAL MANAGER SOUTHERN RAILWAY, MADRAS Respondents

JUDGEMENT

(1.) THIS Original petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996, hereinafter called 'the Act', to set aside the award dated 10.9.2003 passed by ar"bitral Tribunal, comprising of respondents 3 to 5 and pass a fresh award allowing all the claims of the petitioner.

(2.) THE brief facts as culled out from the pe"tition averments are as under: THE respondents 1 and 2 called for tenders for the following work: "Gauge Conversation from Madras Beach to Tiruchirappalli-Villupuram-Tiruchirappalli Section-Transportation of PSC Sleepers by Road from factories at various places, un"loading and stacking the same in the mid-sections at Stations between Tindivanam and Ariyalur Stations." THE petitioner submitted his tender and the same was accepted and subsequently an agreement was entered into between the parties on 10.9.1997. THE petitioner could not complete the work within the stipulated contract period due to shortcoming and breaches of contract by respondents 1 and 2. Respondents 1 and 2 initiated termination proceedings of contract under risk and cost basis. An amount of Rs. 6 lakhs was available with the railways by way of Earnest Money Deposit (E.M.D.) and Secu"rity Deposit (S.D.) deposited by the petitioner. Respondents 1 and 2 deducted a sum of Rs.4,23,333.92 from the Bill dated 21.3.1998 un"der the other agreement dated 16.9.1997 and they proposed to recover a further sum of Rs.6,731/- towards advertisement charges of the fresh risk and cost tender. This resulted in enormous loss to the petitioner and by letter dated 12.6.2000 the petitioner sought for ref"erence of the dispute to arbitration in accor"dance with clauses 62 and 63 of the General Conditions of the Contract (GCC). As respon"dents 1 and 2 failed to constitute the arbitral Tribunal, the petitioner approached this Court in O.P.No.857 of 2000 under Section 11(4) of the Act 1996 and this Court directed the 1st re'spondent to act in accordance with clauses 62 and 63 of GCC. THEreafter, the Tribunal was constituted consisting of respondents 3 to 5. THE Tribunal passed an award on 10.9.2003 directing respondents 1 and 2 to pay a sum of Rs. 6,28,766.80 only and aggrieved by the inadequacy of the amount, the petitioner filed the above O.P., under Section 34 of the Act, 1996.

(3.) A perusal of the award under challenge will show that each of the 7 claims was prop"erly considered by the Tribunal and separate findings were given.