CHATURVEDI TRANSPORT Vs. UNION OF INDIA AND ANOTHER

JUDGEMENT

(1.) Applicant has filed this case for appointment of Arbitrator under Section 11(6) of Arbitration and Conciliation Act, 1996 (hereinafter called as "the Act of 1996").

(2.) The applicant was awarded a contract of transportation of vehicles from Vehicle Factory, Jabalpur to different Defence Depots. A work supply order was issued in favour of the applicant on 24.09.2010. In accordance with the contract, the applicant had to deliver 675 vehicles at CVD, Delhi and he was eligible to get cost of transportation at the rate of Rs.1,20,010/- per vehicle. It was further agreed by the respondents that the insurance of the vehicles transported shall be done through M/s Bajaj Allianz General Insurance Company, Jabalpur.

(3.) As per the application, the respondents failed to insure the vehicles by the aforesaid company within stipulated time, hence the vehicles could not be delivered within the period of contract. Thereafter, there was also failure of other conditions. CVD, Delhi did not accept delivery of vehicles and the vehicles were parked out side the premises for a considerable long time. Subsequently, the vehicles were accepted. The applicant pleaded that he had suffered substantial loss in completing the contract. It was due to the act of the respondents.