UNION OF INDIA Vs. DIN DAYAL

JUDGEMENT

(1.) THIS is an appeal brought by the Union of India against an order passed under Section 34 of the Indian Arbitration Act refusing to stay the suit which .was brought by the plaintiff Din Dayal Kapur for the recovery of Rs. 14,420/- on the 12th June 1950.

(2.) ON the 25th October 1950, the Government Pleader on behalf of the Union made an application under Section 34 of the Arbitration Act for stay of proceedings alleging that the Union was always ready and willing to do everything necessary for the proper conduct of arbitration. To this the plaintiff took objection and stated in his reply dated the 15th November 1950 that the arbitration clause was void for uncertainty, that the claims of the plaintiff were outside the arbitration clause, that the Superintending Engineer and the Executive Engineer were guilty of fraud inasmuch as they altered the terms of the contract and that the Union had repudiated the contract.

(3.) CERTAIN letters have been placed on the record by the plaintiff which have been admitted by the defendant. The first is dated the 14th July 1947 which is sent by the plaintiff to the Superintending Engineer saying that at the time of allotting the work to him annas eight per sq. ft. was agreed between him and the Executive Engineer and an agreement was drawn up in accordance with that. In reply to this letter the Superintending Engineer wrote on the 6th August 1947 saying: