LADHURAM KEDIA Vs. BENGAL JUTE MILLS LTD

JUDGEMENT

(1.) This is an application for setting aside an award made by one C.P. Mallick, Superintending Engineer.

(2.) By a contract, dated February 4, 1943, the Petitioners S.K, Roy & Co., Ltd., agreed to supply ten lakhs cubic feet of shingles to the Respondent Union of India. The supply was, to be made within a period of three months from the date of the contract, that is to say, by May 5, 1943, and, in default, the contractor was liable to pay a fine. The contract contained' an arbitration clause under which the dispute between the parties was to be referred to the arbitration of the Superintending Engineer of the Circle for the time being.

(3.) It is admitted that only a part of the supplies under the contract was made. There is a dispute between the parties about the reason why full supply was not made. According to the Petitioner, it was told by the representatives of the Respondent to stop supply. This is denied by the Respondent. On April 29, 1943, a letter was written to the Petitioner on behalf of the Respondent asking it to show cause why it should not be penalised for supplying only half a lakh cubic feet of shingles and why its name should not be removed from the list of contractors. It appears that a penalty of the sum of Rs. 26,000 was imposed by the Respondent on the Petitioner and this was deducted from the security deposit of,the Petitioner lying with the Respondent. The Petitioner claimed refund of this sum of Rs. 26,000 and the dispute was referred to the arbitration of Mr. Agarwal, Superintending Engineer, but as Mr. Agarwal was unable to act, the dispute was eventually referred to the arbitration of Mr. C.P. Mallick.