UNION OF INDIA Vs. CHHAJJOOMAL AND SONS

JUDGEMENT

(1.) WE are deciding these Misc. Appeals which have been preferred by both the parties under Section 39 (vi) of the Arbitration Act, 1940 being aggrieved by the judgment and decree dated 29th March, 1985 passed by Additional District Judge, Mhow in Civil Suit No. 5/1983. Both the parties have challenged the aforesaid judgment and decree by separate appeals before us.

(2.) SUCCINCTLY narrated, the facts of the case are that the respondent of Misc. Appeal No. 161 of 1985 was a Military Contractor. In the years 1941 to 1946 the said contractor took military contracts for construction of buildings and supply of furniture to the military services at Bairagarh, Ajmer, Nasirabad and Mhow. The Contract No. C-444, dated 28-6-1944 was entered into between contractor and Lt. Col. E. L. Farley R. E. C. R. E. , Mhow at Mhow. There was some dispute in respect of the aforesaid Contract No. C-444 between the parties and the matterwent up to the Hon'ble Supreme Court. On 20-11-1978 parties entered into a compromise before the Supreme Court. The contractor was claiming a sum of Rs. 28,226. 00 as per the award and also a sum of Rs. 16,475. 00 as a security deposit with interest amounting to Rs. 1,31,121. 00. The appellants/department despite notice has not paid the aforesaid amount to the contractor, hence an application under Section 20/8 of the Arbitration Act, 1940, was filed by the contractor for referring the dispute to the arbitrator. The application was objected on the ground that there was no dispute or difference between the parties and it was also objected that the plaintiff's claim is barred by time.

(3.) BY order dated 4-5-1981 the Reference Court referred the matter to the arbitrator as per the agreement. Originally Major General Incharge Administration Central Command (Army) was appointed as an arbitrator but on his expressing inability to act as arbitrator, Retd. Major General Shri S. N. Bhatiya was appointed as arbitrator. The arbitrator passed his award on 14-6-1983, In this award the arbitrator did not decide the point of limitation and gave his finding on the point of costs though it was not referred to him. In the meantime contractor also claimed some additional amount of Rs. 9,333. 31 ps. The District Court by order dated 7-10-1983 remitted back the award to the arbitrator for giving his fresh award considering the point of limitation and also the newly added amount. The award concerning the costs was set-aside by the Court. The arbitrator gave fresh award on 19-12-1983 in the light of the Court order dated 7-10-1983.