SAXENA AND CO Vs. DAMODAR PERSHAD GUPTA

JUDGEMENT

(1.) THIS is an appeal brought by the defendants Messrs. Saxena and Co., against an order passed by a learned Subordinate Judge of Delhi refusing to set aside an award made in favour of the plaintiff during the course of a suit for the recovery of a sum of Rs. 10,000/-.

(2.) IN 1946 Saxena and Co. purchased two lacs of parachutes worth Rs. 32,00,000/- for a Mr. King from the Disposals Department. They were to be paid a commission of one rupee percent, which worked upto Rs. 32,000/- and this commission was to be shared half and half between the plaintiff Damodar Parshad Gupta and the defendants. For some reason or another King did not take over this bargain and the parachutes were purchased by Messrs. Milkhi Ram and Bros. of Bombay on or about 23-71946 with the consent of King and it was arranged by the plaintiff and the defendants to make delivery of parachutes to. Messrs Milkhi Ram and Bros. On 237- 1946 a cheque for Rs. 10,000/- was issued by Messrs. Saxena and Co, in favour of Damodar Parshad Gupta which was presented to the Bank in January 1947 but it was dishonoured on the 16th January on the ground that the drawer had stopped payment. Meanwhile on 13-8-1946 Saxena and Co., gave a cheque for Rs. 5,000/- to Damodar Parshad Gupta which it is how alleged was in full and final settlement of Gupta's share in the commission. Damodar Parshad Gupta then brought a suit for the recovery of Rs. 10,000/- on the basis of this cheque on 29-7-1949. As a result of the pleas of the defendants several issues were stated by the learned Judge.

(3.) TWO questions have been debated before me,(1) that the arbitrator has misconducted himself as he proceeded ex parte without reasonable cause and (2) (which was raised by the respondent) that in' terms of the agreement he need not have heard the defendants at all.