AVINASH BAWA Vs. STATE OF H P

JUDGEMENT

(1.) It appears, on 4th January, 1996 the Principal Chief Conservator of Forests, Himachal Pradesh, invited tenders for the sale of "Bhabber grass" which was grown in Bilaspur, Nalagarh, Nahan, Paonta Sahib and Una (Kutlehar) Forest Division. The terms and conditions for tenders were stipulated in the tender notice. M/s. Avinash Bhawa and Co., hereinafter referred to as the "claimant" were the highest tenderers. An agreement was executed between the claimant and the Government of Himachal Pradesh in the Department of Forest Farming and Conservation, hreinafter referred as "the respondent" on 24-1-1996. The estimated quantity of grass, as stated, in the agreement was 18,850 quintals. The claimant agreed and contracted to purchase the grass at Rs. 72 per quintal. The total amount of the contract value came to Rs. 13,57,200. Under the contract agreement, the purchasers were required to pay for a minimum extraction of 14,683 quintals of Bhabber grass, even if the claimants did not extract any or entire quantity of Bhabber grass. Thus, the minimum amount of Rs. 10,57,176 as royalty was stipulated to be paid to the "respondent". The royalty amount was to be paid in two equal instalments. The first instalment was payable on 29-2-1996 and second instalment on 31-3-1996.

(2.) The claimant paid both the instalments on 2-4-1996. After three years, on 29-5-1999, the claimant represented to the Principal, Chief Conservator of Forests that the claimants had paid the amount of Royalty in excess of the amount payable to the respondent. Claimant claimed refund of the excess amount. The plea of the petitioner did not find favour with the respondent. The dispute having been arisen between the parties was referred for arbitration. Sh. R.A. Singh, Conservator of Forests (Hqr) was appointed as sole Arbitrator to adjudicate the dispute between the parties.

(3.) The claimant, in his claim, before the Arbitrator, claimed Rs. 15,90,089-08 on the grounds that as per the contract agreement availability of Bhabber grass was estimated to be 18,850 quintals. However, the claimant could extract only 4000 quintals of Bhabber grass whereas he had paid royalty for minimum quantity 14683 quintals as stipulated in the agreement, and thus suffered a loss of Rs. 7,69,176. The claimant also claimed corresponding refund of sales tax amounting to Rs. 61.534.08 paid to the department and interest of Rs. 7,59,379 in all Rs. 15,90,089.08 paise.