RAGHUNATH ENAMELS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE short question for determination in this petition is whether the arbitrator had any jurisdiction to go into the dispute which was referred to him?

(2.) IN order to appreciate the point in issue, it would be necessary to state the facts briefly. The petitioner Raghunath Enamels Ltd. entered into a contract with the Union of India through the Ministry of Works, Housing and Supply, which is the first respondent on 4th of November, 1954, for the supply of "3250 Imperial gallons of Enamels" in terms of the conditional contained in the acceptance of tender. The supply of Enamels was to conform to the standards sample No. AT/18/52 of 3rd of October 1951 approved by the Government Test House certificate on 26th of August, 1953.

(3.) OUT of the total quantity indented for only 1760 Imperial Gallons were supplied and accepted by the first respondent. The remaining supply of 1490 Gallons though tendered for inspection by the supplier on 29th of December, 1955, was rejected by the Inspector on 9th of March, 1956. The time for delivery was thereafter extended to 15th of February, 1957, on which date the same quantity was again tendered and rejected by the Inspector on 6th of May 1957. The first respondent felt obliged to make the purchase of 1490 gallons at the risk of the supplier and a sum of Rs. 12,168-43 np. was debited to the account of the petitioner. A sum of Rs. 2296/- was mulcted on the petitioner as liquidated damages in pursuance of the agreement. The sum due from the petitioner not having been paid to the first respondent, the adjustment was made from the credits standing in the name of the petitioner with the Union of India in respect of other contracts. Subsequently, the dispute was referred to arbitration.