SATYA METAL INDUSTRIES Vs. UNION OF INDIA REP BY DIRECTORATE OF SUPPLIES AND DISPOSALS DEPARTMENT OF SUPPLY SHASTRI BHAWAN CHENNAI

JUDGEMENT

(1.) These two intra court appeals are directed against the common order dated 10 June 2008 in Tr.O.P.Nos.577 and 632 of 2006 setting aside the award passed by the Arbitrator, on the ground that clause 18(a) of the Conditions of contract empowers the Department of Supply to exercise lien in respect of claims pending finalization of adjudication of any other claim.

(2.) The appellant entered into a contract with the first respondent for supply of water fittings vide rate contract dated 17 September 1996. The first respondent placed three orders dated 27 March 1997, 5 May 1995 and 12 May 1997. The appellant made supplies pursuant to the supply orders. However, payment was not made by the first respondent. The appellant therefore made a claim. Since there was a provision for arbitration, the matter was referred to the Arbitration of Thiru.B.L.Nishad, Additional Legal Adviser to the Government of India at New Delhi.

(3.) The arbitrator passed two awards dated 11 September 2000 in Award Nos.13/M/1999 and 14M/1999. The amount payable to the appellant was determined by the Arbitrator.