UNION OF INDIA Vs. PUNJAB DISTILLING INDUSTRIES LTD

JUDGEMENT

(1.) This is a rule obtained by the Union of India against an appellate order of the District Judge, Delhi, confirming the order of a learned Subordinate Judge and thus passing a judgment in accordance with the award which was followed by a decree.

(2.) The parties to the present litigation had entered into a contract on the 5th December, 1944 by which the Punjab Distilling Industries, Limited, agreed to supply 38,000 lbs. of solidified fuel to the Governor-General in Council, but the assignee was the Deputy Inspector of Foodstuff's at Lahore Cantonment. As disputes arose, the matter was referred to arbitration, but the arbitrators having disagreed, an umpire was appointed who started proceedings on the 17th December, 1947 and made an award on the 24th November, 1948. Before him no question was raised as to the liability of the Governor-General in Council or as a matter of that Governor-General of India. Mr. Bishambar Dayal who has now appeared took every kind of objection which he thought necessary to take before the arbitrator but no objection under clause 8 of the Indian Independence (Rights and Liabilities Order) was taken. In the award a decree was given the Governor-General in Council for Rs. 4,027/5/3. On the following day the umpire announced the award in the presence of the parties and gave a copy of the award to each of them.

(3.) On the 20th June, 1949, an application purporting to be under sections 14 and 17 of the Arbitration Act was filed by the Company in the Amritsar Court to enforce the award. An objection of the Union of India that only Delhi Courts had jurisdiction was sustained and the same application was filed by the Company in a Delhi Court on the 13th February, 1951.