UNION OF INDIA Vs. RAMDAS OIL MILLS

JUDGEMENT

(1.) Ramratna Singh, J. 1. This appeal is directed against the order of the District Judge of Singhbhum acting as an arbitrator under Section 19 of the Defence of India Act, 1939, and determining the compensation payable by the Union of India, requisitioning the property belonging to Messrs. Ramdas Oil Mills at Jameshedpur for the military. The possession of this property was made over to the Officer Commanding Workshops, India Army Corps on the 1st March, 1942, who remained in possession thereof upto the 1st August 1940. The property was released on the 2nd, August, 1046. When the proprietors of the mills took over the same. The property con-listed of buildings, in which the machineries of the mills were located, residential quarters, offices, sheds and other structures. After some correspondence between the Central Government and the proprietors of the mills, an agreement was arrived at to settle the amount of compensation payable by the Government to the owners of the property on the 2nd, April, 1953 (Ext. A). The relevant clauses of the agreement are the following:-- "(1) The Government shall pay a lump sum of Rs. 15,000 in full settlement of the claim for compensation on account of loss sustained due to sudden stoppage of business; cost of removal of machineries and plants; cost of re-installation of machineries; rump sum compensation on account of re-establishment of business etc. (2) The Government shall pay a sum of Rs. 1650 per month as rent for the requisitioned property so long it remained in possession of the Government. (3) The Government shall pay electric, water charges and telephone charges etc. (4) The Government shall pay 91 per cent of the ground rent as well as some contribution towards the services of municipal nature. (5) The requisitioned property shall be restored to the owners by the Government in its present condition, subject to natural wear and tear. (6) After the termination of the period of requisition the said premises, with all buildings, structures, fittings and fixtures including machineries, electrical plants, overhead and underground electric and water lines with all their equipments, shall be handed over to the owners in as good a condition in which they were taken on the date of requisition and the Government shall be liable to damages, destruction or deterioration of any or all of the properties, machineries, or plants etc for whatever causes. (7) Should any dispute or difference arise out of or concerning the subject matter of the agreement of any Clause thereof, the same shall be referred to an arbitrator to be appointed by the Government and the decision of such arbitrator shall be conclusive and binding on the parties thereto. (The provisions of Arbitration Act, 1940 shall apply to such arbitration)." To this agreement, a list of the structures and machineries taken over by the military authorities was appended; and item (7) of this list consisted of 36M/2-tvpe quarters pucca built with pucca roof having compound walls also situated on the eastern enclosures of the mill premises. One room, however, of the main building remained in possession of the owners of the mills, even after the 1st March, 1942, because the machineries thereof being complicated could not be removed and that room was locked up by the owners.

(2.) On the allegation of the owners of the mills that, at the time of taking back possession of the requisitioned property, it was found that extensive damages had been done to the same and a list of such damages (Ext. 1) was prepared by one Capt. H. Das, A. D. H. O. Lands, Hirings and Disposals, in presence of the Sub-divisional Officer, M.E.S. Mechanical and Electrical and the representatives of the owners of the mills (hereinafter referred to as the claimants); there was correspondence between the claimants and the Government in respect of such damages; and the maximum offer made by the Government, viz., Rs. 10,500 for the same was not accepted by the claimants. Hence, the dispute was referred to the District Judge of Singhbhum for arbitration.

(3.) On the statements of the respective cases of the parties, the arbitrator framed seven issues and gave his findings thereon. Being dissatisfied with the findings, the Union of India preferred this appeal and the claimants also filed a cross-objection.