AMIN CHAND BHOLANATH Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal arises out of the partial acceptance of the objections of the respondent to the award of the umpire to whom the disputes between the parties were referred arising out of two contracts of 2-10-1943 and 29th January 1944 for the supply of milk cans.

(2.) It is common ground that the appellant firm supplied part of the goods but the contracts were cancelled with regard to the outstanding quantities on 27-8-1945. The disputes between the parties were referred to two arbitrators who had been appointed under the terms of the contracts, but they failed to give an agreed award and a reference was made to the umpire on 20-5-1950. The validity of the arbitration agreement was challenged by the respondent under S. 33 of the Indian Arbitration Act, but that agreement was upheld by the High Court, on 1-11-1954. The umpire gave his award granting a total sum of Rs. 1,81,912/- to the appellant-firm together with future interest at the rate of 6 per cent annum, if that amount was not paid within 30 days of the award. This amount consisted of the following items: <FRM>JUDGEMENT_310_TLP&H0_1959Html1.htm</FRM> The umpire presented an application under S. 14 of the Arbitration Act on 22-7-1955 for filing the award on which the respondent preferred objections under S. 30.

(3.) Some of the objections were wholly untenable as is clear from the concessions made by the Government Pleader in the Court below. He also agreed that the breach of contract had taken place on the part of the respondent. All the objections failed with the exception of the one relating to interest, which was sustained by the Court. The award was made a rule with the consequential modifications, the items being severable.