UNION OF INDIA Vs. SHAMBHU DIAL PIARE KISHAN

JUDGEMENT

(1.) THIS appeal has been preterred by the Union of India from the order of the Senior Subordinate Judge, Jullundur, making the award dated 29th of June 1959 of Brigadier Annon Singh as arbitrator a rule of the Court.

(2.) THE respondents entered into a contract with the appellant, Union of India, for a period of one year commencing from 1st of April 1947 for hired animal transport for Jullundur. It appears that the communal disturbances of 1947 impeded the execution of the contract and the respondents approached the army authorities as early as 24th of June 1947 for modification of its terms with regard to rates. The respondents were informed on 20th of November 1947 that the question of enhancement of rates would be given consideration after the contract had been executed. The respondents, as suggested by the Union of India continued with the work on contractual rates and after its execution the rate was enhanced by 100 per cent. In consequence of this decision a sum of Rs. 16,155-2-0 was paid to the respondents. as the Deputy Commissioner of Jullundur had reported on enquiry by the Area Commander that the respondents were entitled to an enhancement of at least 300 per cent according to the prevailing rates, a demand was made by the contractors for increase of rates according to the report of the Deputy Commissioner. Computing their claim on this basis, the respondents put in a claim of Rs. 63,200-13-6 and deducting the sum of Rs. 16,155-2-0 already paid to them, a demand was made for a sum of Rs. 47,045-11-6. They also claimed interest at the rate of 6 per cent per annum. An application under Section 20 of the Indian Arbitration Act was preferred by the respondents on 30th August, 1957 in the Court of the Senior Subordinate Judge, Jullundur. The Union of India did not offer opposition to this petition and the respondents agreed to the proposal which originated from the Union of India, that Brigadier Anoop Singh as Arbitrator would settle the dispute which had arisen between the parties. The award was made by Brigadier Anoop Singh on 29th of June 1959 whereby a sum of Rs. 20,375-11-5, inclusive of interest, over and above the sum of Rs. 16,155-2-0, which bad already been paid, was directed to be paid to the respondents by the Union of India. Both sides felt dissatisfied with the award and one side filed objections and the other an application under Ss. 15 and 16 of the Indian Arbitration Act. Both the objections and the application have been dismissed by the learned Senior Subordinate Judge, who has affirmed the award made by the arbitrator and has made it a rule of the Court.

(3.) IN Champsey Bhara and Co. v. Jivraj Baloo Spinning and Weaving Co. Ltd. , 1923 AC 480: (AIR 1923 PC 66), the Judicial Committee of the Privy Council gave a ruling on this matter at p. 487 (of AC) : (at p. 69 of AIR) in these words: