SHAMJI MAL Vs. SEFTON AND CO LTD

JUDGEMENT

(1.) THE short point for decision in the present case is whether the Director General of Supply was at liberty to nominate an arbitrator when the original arbitrator nominated by him had neglected or refused to act.

(2.) WHEN the Second World war was in progress the Government of India decided to inaugurate a scheme in pursuance of which certain buying agents were appointed with the object of purchasing wool for certain manufacturers employed by Government. The price of these goods was primarily to be paid to the vendors by the vendees themselves but in order to safeguard the interests of the parties the Government of India accepted responsibility for the commitments which had been entered into by any of the parties on its behalf. One of the clauses in the agreements which were executed with the buying agents under the Central Wool Purchase Scheme was in the following terms:

(3.) THE only point of importance which has arisen in the present case is whether it was open to the Director General of Supply, after having nominated an arbitrator on one occasion, to revise his decision and to nominate another arbitrator.