NATHUNI SHAW Vs. UNION OF INDIA

JUDGEMENT

(1.) THE grievance of the petitioner is restricted to one point, in course of hearing. The petitioner obtained a refund of the earnest money deposited pursuant to its agreement with the respondent to purchase certain scrap. The petitioner insists that upon the Arbitrator holding that the petitioner was entitled to refund of the earnest deposit, interest for the period for such earnest deposit so withheld by the respondent railways should have also been awarded.

(2.) THE petitioner made a much larger claim in the reference. The petitioner alleged that he had suffered damage to the extent of Rs. 10,00,000/- and also claimed, in the alternative, a direction for delivery of the goods purchased without the railways being entitled to claim any interest. The Arbitrator found that the claim on account of loss and damages was unmeri torious. The Arbitrator held that there was a substantial period of time after the earnest money had been deposited that the claimant had been inactive. The Arbitrator found that the terms of the sale was on as is where is basis and the claimant's grievance that the goods were not in a deliverable State, was unacceptable.

(3.) THE Arbitrator, however, found as a matter of fact that the price of the scrap had increased from Rs. 441. 25 per meter in September 2001 to Rs. 781 per meter in April 2004. The Arbitrator, thus, concluded that the railway respondents had not suffered any loss that could have entitled them to retain the earnest money or forfeit the same. On such reasoning, the Arbitrator awarded the refund of the earnest deposit.