KISHORE TEXTILES MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE award dated 24th December, 1998 delivered by Shri S.B. Sharan, Additional Legal Adviser to the Government of India, Ministry of Law and Justice, New Delhi, who was appointed as a sole arbitrator by the Director General of Supplies and Disposals, New Delhi is the subject matter of challenge in this petition.

(2.) THE facts in brief relevant to the subject matter are as under :

(3.) THE petitioners challenged the submissions set up by the respondents and stated that the balance quantity of pairs could not be supplied due to force majeure circumstances. It is further stated by the petitioners that the offer of the petitioner to supply 33,625 pairs with some additional quantity was wrongfully rejected by the respondents and that the extension of delivery period was unilateral and the same was not acceptable to the petitioners. It is further stated that the petitioner being a small scale industrial unit it was exempted from payment of security deposit but the same was wrongfully insisted by the respondents and they were compelled to make security deposit of Rs. 14,979/ -. It was further placed in defence that the risk purchase was permissible only within a period of six months from the date of delivery but the said purchase was made after the expiry of period of six months and that was also cancelled. As such, the respondents did not suffer any lossmuch less the loss claimed in arbitration dispute. The Arbitrator tried the said dispute between the parties and passed an award on 24 -12 -1998 awarding claim in favour of Union of India for having incurred an extra amount of Rs. 1,15,183/ - on account of risk purchase at higher rate and at the same time rejected substantial part of counterclaim details of which are given in the award.