ASHOK TRANSPORT AGENCY Vs. CENTRAL COALFIELDS LTD.

JUDGEMENT

(1.) M /s. Ashok Transport Agency, a partnership firm, has filed this appeal under Section 39(1)(vi) of the Indian Arbitration Act, 1940, challenging the order of the Subordinate Judge, Talcher, in Miscellaneous Case No. 105/87 setting aside the award of the Arbitrator.

(2.) THE facts of the case sans unnecessary details may be stated thus : The appellant filed Money Suit No. 8 of 1984 against the Central Coal Fields Ltd., a company registered under the Companies Act, (respondent herein), for rendition of accounts against the respondent in respect of the money due to it on account of transportation of coal by the appellant from Ara and Sarubera Collieries to the nearest rail head. During the contract period of one year commencing from 30.1.1978, the appellant was to transport 4,80,000 metric tons of materials at the rate of Rs. 7.64 per metric ton. The appellant alleged that during the contract period the respondent converted the materials from metric ton to cft. and made less payment than the amount due to it under the contract; that the respondent committed breach of contract and failed to supply, the materials for transportation which caused loss to it and further on account of negligence and lapse on the part of the respondent in failure to provide loading facilities on two shift basis, the appellant also incurred huge loss because of idle wages paid to the labourers and hire charges for vehicles. The appellant alleged that on 30.1.1981 the respondent made in less payment on the open and current account between the parties. It was the further case of the appellant that there was mutual and current account between the parties maintained by the respondent and such account remain unsettled.

(3.) BEFORE the Arbitrator, the respondent raised various pleas including the question of limitation. Ultimately, the Arbitrator passed a reasoned award in the following terms : "After careful scrutiny of the claim, counter and exhibits filed by both the parties and taking into consideration the evidence, citations, and arguments of both the parties and their Counsel. I would allow in favour of the claimant a principal sum of Rs. 7,09,340.88 (rupees seven lakhs, nine thousand, three hundred forty and paise eighty eight only) and interest at the rate of 12% per annum on the principal of Rs. 7,09,340.88 from 1.2.1981 till the date of decree or final payment whichever is earlier. Also I would allow a sum of Rs. 3,000/ - (rupees three thousand) only in favour of the claimant towards the cost of the proceedings. Future interest is at the discretion of the Court."