LARSEN AND TOUBRO LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) IN the disputes which arose between Larsen and Toubro Limited (hereinafter referred as petitioner) on the one hand and Food Corporation of India, Madras (hereinafter referred as respondent) on the other hand, the learned arbitrators have made and published their Award, being the Award dated 14th November, 1987, which has been filed in this Court and numbered as Award No. 143 of 1987 (hereafter referred as the said Award ). The Arbitration Petition No. 40 of 1988 has been filed by the petitioner for modification of the said Award by deleting therefrom the claim awarded in favour of the respondent and the Arbitration Petition No. 43 of 1988 has been filed by the respondent alongwith the Union of India also for modification of the said Award by deleting therefrom the claim awarded in favour of the petitioner. Since both the petitions are connected with each other, it is convenient to dispose off the same by this common order.

(2.) AT the very out set, it was disclosed to the Counsel appearing in the petitions that I have a share holding in the petitioner company. Both the Counsel stated that despite my having a shareholding in the petitioner company, they have no objection to my hearing of petitions. Accordingly, I have proceeded with the hearing of the petitions.

(3.) ACCORDING to the petitioner, the respondents claim against the petitioner for delivery of/damage to cargo did not form part of the reference before the Arbitrators and as such, that portion of the said Award which relates to a sum of Rs. 52,910/- Awarded in favour of the respondent and against the petitioner is to be expunged from the said Award and accordingly, the said Award be modified under section 15 of the Arbitration Act, 1940 (hereafter referred as the said Act ). In the alternative, it is the case of the petitioner that the provisions for Carriage of Goods by Sea Act of United States 1936 applied and since under section 6 of Carriage of Goods by Sea Act of United States 1936, if a suit is not brought within one year after delivery of the goods or the date when the goods should have been delivered, the claim gets extinguished, the counter-claim of the respondent stood extinguished as the said Vessel had completed the discharge on 6th December, 1982 and the respondent had filed reference in respect of its claim after a period of more than 2 years and 7 months therefrom. According to the petitioner since the petitioner stood discharged from all liabilities by reason of such extinguishment, the claim of the respondent was incapable of being referred to arbitration.