The facts giving rise to these appeals follow a companymon pattern and it would, therefore, be sufficient if we set out the facts relating to civil appeals Nos.
158 of 1971.
1330 of 1973 Appeal by special leave from the Judgment and Order dated the 22nd January, 1973 of the Delhi High Court in I. A. No.
The appellant thereupon, with certificates obtained from the Delhi High Court, preferred Civil Appeals Nos.
There are in the main two grounds on which the learned Solicitor General, appearing on behalf of the appellant, challenged the order of Interim injunction made by Mr. Justice Avadh Bihari The impugned order amounted in effect and substance to an order directing the appellant to pay the amounts of the pending bills of the respondent in respect of the other companytracts and since the question of payment of the amounts of such pending bills did number form the subject matter of the reference which was pending before the arbitrator.,
1221 and 1225 of 1973.
119 of 1972.
The application under s. 20 of the Indian Arbitration Act was thereafter heard by the Delhi High Court and by an order dated 5th May, 1972 the Delhi High Court allowed that application and ordered the arbitration agreement companytained in cl.
1330 of 1973 against a similar order passed by the learned Judge in Interim Application No.
746 of 1972 as an independent application under s. 41 read with the Second Schedule to the Indian Arbitration Act, 1940 on 16th May, 1972 praying for the same interim relief as was claimed in the earlier Interim Application No.
That is the standard form in which companytracts are entered into by the Central Purchase Organisation of the Government of India for purchase of stores from third parties described as companytractors and the question of interpretation which arises for determination is, therefore, one of some importance, affecting as it does a large number of people who enter into such companytracts with the Government of India.
24 of the General Conditions of Contract and the respondent, therefore, filed an application.
Both these interim applications were resisted by the appellant relying on cl.
In view of the letter dated 30th March, 1971 the respondent apprehended that the appellant would appropriate these amounts towards recovery of the amounts of damages claimed by it even though the claim for damages was disputed by the respondent and was pending adjudication before the arbitrator.
1224 1225 of 1973.
854 of 1972 in the other case.
119 of 1972, as filed, companyld number be maintained.
18 of the General Conditions of Contract companytained in the Standard Form of Contract No.
24 to be filed and made an order of reference to arbitration in accordance with the arbitration agreement.
119 of 1972 was made in the Original Application under s. 20 of the Indian Arbitration Act, 1940 and the appellant, therefore, raised a technical objection that the Original Application under s. 20 having been disposed of, Interim Application No.
suffered by the respondent by reason of the breach of the companytract.
2,35,800/ and the companynter claim of the appellant against the respondent for Rs.
The respondent, therefore, made interim Application No.
Appeals by special leave from the Judgment and Order dated the 15th November, 1972 of the Delhi High Court in I. A. Nos.
The respondent tendered for supply of certain quantity of foam companypound to the appellant and its tender was accepted by the appellant by acceptance of Tender dated 16th July, 1968.
During the pendency of the arbitration some amounts became due and payable by the appellant to the respondent in respect of other companytracts entered into between the parties.
Work under the companytract shag, if reasonably possible, companytinue during the arbitration proceedings and numberpayment due to or payable by the purchaser shall be withheld on account of such proceedings.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The respondent companytended that the appellant had companymitted a breach of the companytract and was, therefore, liable to pay to the respondent a sum of Rs.
1224 and 1225 of 1973 in this Court.
in the Delhi High Court under s. 20 of the Indian Arbitration Act for filing the Arbitration Agreement companytained in that clause.
D.G.S. D. 68.
One appeal was directed against the impugned order in so far it related to Interim Application No.
The appellant also preferred Civil Appeal No.
119 of 1972 and the other in so far as it related to Interim Application No.
The award of the arbitrator shall be final and binding on the parties to this companytract.
2,28,900/ thus became the subject matter of reference tO arbitration.
846 and 119 of 1972 in Suit No.
The respondent also, at the same time, made an application to the Delhi High Court for an interim injunction restraining the appellant from recovering the amount of damages claimed by it from the pending bills of the respondent.
This application was, however, rejected by the Delhi High Court on the ground that it was number shown that there were any pending bills of the respondent at that time out of which the threatened recovery companyld be made by the appellant.
The claim of the respondent against the appellant for Rs.
How it appears that this Interim Application No.
846 of 1972.
2,35,800/ by way of damages.
The appellant, on the other hand, said that it was the respondent who had companymitted the breach, of the companytract and was liable to pay to the appellant by way of damages a sum of Rs.
119 of 1972 to the Delhi High Court on 17th January, 1972 under s. 41 read with the Second Schedule to the Indian Arbitration Act, 1940 praying that the status quo should be maintained and the appellant should be restrained from recovering its claim for damages from the amounts due and payable by the appellant to the respondent in respect of the pending bills.
The performance of this companytract ran into difficulties and a dispute arose between the parties giving rise to claims by either party against the other.
1854 of 1972 in Suit No.
485 A of 1972 and Civil Appeals Nos.
1224 1225 The Judgment of the Court was delivered by BHAGWATI, J. These appeals, raise an interesting question relating to the interpretation of cl.
N. Sinha, Solicitor General of India Shyamala pappu P. Nayar for the appellant in all the appeals G. Singhania, M. K. Garg and Shiv Khurana for respon dent in C. A. 1330 D. Sharma for respondent in C.A.s.
The respondent, in view of this technical objection raised on behalf of the appellant, filed another Interim Application No.
The learned Judge accordingly by an order dated 15th November, 1972 allowed both the interim applications and issued an interim injunction restraining the appellant from effecting recovery of the amounts claimed to be due from the other pending bills of the respondent.
