SAKTIPADA DEY Vs. UNION OF INDIA

JUDGEMENT

(1.) The subject matter of challenge in this application under the Arbitration Act, 1940, is an award dated 18th April, 1977. In order to appreciate the challenge it would be necessary to refer to certain facts. It appears that the petitioner, as contractor, had certain claims against the respondent. These claims were on different heads and details of these claims were tabulated in the statement of claim. The total amount claimed amounted to about Rs. 1,40,000.00. Of this item no. 1 of the claim was for Rs. 36,800.00 which was earnest money. The respondent, Railway authorities submitted a rejoinder or a reply to the Statement of claim filed on behalf of the claimant, the petitioner herein. In the said reply, the Union of India had set out its own comments in respect of each head of items of claim made by the petitioner. It was thereafter stated in the said reply as follows :

(2.) The counter claims of the Railways were on account of the alleged extra cost for loading of ballast, departmental charges for supervision and 10 per cent penalty for not effecting the supply within the stipulated time. In the annexure to the reply dealing with the comments and the details of the claim of Rs, 94,429, leaving aside the other claims, the Union of India had, so far as the earnest money was concerned, stated as follows :

(3.) Upon this, the arbitrator being the Engineer-in-chief (Survey), South Eastern Railway. Tatanagar made an award on the 18th April, 1977. In the said award, he held, inter alia, as follows :