UNION OF INDIA Vs. JANKI PRASAD AGARWAL

JUDGEMENT

(1.) THE instant appeal under S.39 of the Arbitration Act, 1940 (hereinafter referred to as the Act) has been preferred against the judgment and order dated 20-7-1978 passed by Sri S. B. Misra, Civil Judge, Jhansi decreeing the plaintiff-respondent's suit No. 41 of 1977 titled as Janki Prasad Agarwal v. Union of India.

(2.) TENDERS for the sale of coal ash on running contract basis by "Stock measurement" and on "lump sum" for the Jhansi "traffic area" for the period of one year were invited in the month of Jan. 1975 by the Divisional Engineer, Central Railway Jhansi (South). This period of one year was to be reckoned from the date of execution of the agreement. The tenderers to the offer were required to deposit Rs.2500/- as security money along with the tenders which were to be opened on 29-1-1975.

(3.) PARTIES entered into a contract and an agreement in writing was executed on 25-4-1975. The contract for the sale of the coal ash was to commence with effect from 1-5-1975 and was to end on 30-4-1976. It was agreed between the parties that the cost of the coal ash was payable at the rate of Rs. 7000/- per month by depositing the same with the railway authorities. The entire coal ash of the "traffic area" was to be delivered to the respondent during the period of contract i.e. 12 months.