ASHOK TRANSPORT AGENCY Vs. CENTRAL COALFIELDS LTD.

JUDGEMENT

(1.) M/s. Ashok Transport Agency, a partnership firm, has filed this appeal under Sec. 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 Sanibera 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.) The respondent on entering appearance in the suit filed an application under Sec. 14 of the Arbitration Act (hereinafter referred to as "the Act") for stay of the proceeding. Subsequently, both parties stifled joint application under Sec. 21 of the Act for reference of the disputes to the sole arbitration of Shri Chintamani Mohapatra, a retired District Judge. In the said application, the parties prayed that details as per the plaint are to be, the terms of reference to the Arbitrator.