MEHAR SINGH Vs. CENTRAL WAREHOUSING CORPORATION

JUDGEMENT

(1.) This first appeal is directed against an order dated June 4, 1993 passed by the Subordinate Judge 1st Class, Amritsar whereby the petitions filed under Sections 14 and 17 of the Arbitration Act were dismissed and in view of the objections raised against the award the same was set aside.

(2.) An agreement for the construction of 50,000 M.T. capacity godowns for storing foodgrains at Nabha was entered into between Mehar Singh and Sons appellant herein (for short 'the contractor') and the Central Warehousing Corporation (hereinafter referred to as 'the Corporation'). The agreement contained an arbitration clause. Disputes arose between the parties in respect of the construction work carried out under the agreement and the same were referred to the sole arbitration of Shri Guru Dayal, a retired Chief Engineer, U.P. Public Works Department, Ghaziabad. Arbitration proceedings commenced on May 26, 1985 and they concluded on July 8, 1989. The time for making the award was being extended by the Court from time to time and the arbitrator as per his award dated 17.11.1989 awarded a sum of Rs. 12,46,241.15 ps. in favour of the contractor and against the Corporation in full and final settlement of claims/counter claims of the parties. The arbitrator thereafter filed the award along with the proceedings in court whereupon notice was issued to the parties of the filing of the award. The contractor wanted the same to be made a rule of the Court whereas the Corporation filed the award. The contractor wanted the same to be made a rule of the court whereas the Corporation filed its objections. From the pleadings of the parties, the trial Court framed the following issues :-

(3.) After allowing the parties to lead their evidence oral and documentary, issue No. 1 was decided in favour of the contractor and against the corporation in view of the earlier order dated November 16, 1990. The contractor did not press issues 2,4,5 and 6 and consequently these were decided in favour of the Corporation. Issue No. 3 pertains to the grounds raised by the Corporation for the setting aside of the award. The Corporation had raised the following three objections in this regard :-