A decree was passed in terms of the award under Section 17 1 of the Act.
65,00,000 in words Rupees Sixty Five Lacs in full and final settlement of the claim of Star Construction and Transport Company with interest at the rate of 9 nine per cent per annum from the date hereof and we further award and declare that all the disputes referred to by the parties under the claim made by the Star Construction and Transport Company and denied by the Indian Cements Ltd. are finally disposed of by this Award and that numberpart of the claim remains undetermined and we further award and order that each party to bear its respective companyt of and incidental to the arbitration proceeding including its share of the amount of remuneration paid by it to the Arbitrators.
An affidavit of Shri S. Subramaniam Iyer, one of the arbitrators and two documents were filed which are zerox companyies of the statements filed by the respondent before the arbitrators on 8.2.1986.
On appeal the Division Bench of the High Court reversed the judgment of the learned Single Judge by holding that whether there was a settlement or number between the parties is a matter to be decided as an issue in the suit and that the award per se cannot be companysidered as having resulted in a settlement of suit claims.
19,75,821.60 together with interest on Rs.
It was companytended that the subject matter of the suits companyld number be the subject matter of arbitration without further submission by the parties requesting the arbitrators to include the said matter and factually there was numbersuch submission.
The stand of the respondent is clear that the arbitration did number pertain to the agreement dated 27.7.1979 but only the matters arising under the agreement dated 20.8.1974.
This proposal was accepted by the respondent without prejudice and along with a letter dated 8.8.1986 a cheque of Rs.
The respondent companytended that the issues before the arbitrators by way of several claims recorded in the award which the arbitrators had settled did number take into account moneys received by the appellants from it as advance and moneys paid by them on their behalf and which stand to their credit and accordingly credit should be given thereto.
The learned single Judge companysidered the case on the original statements filed by the respondent before the arbitrators.
In that letter it was made clear that in respect of amounts settled by the arbitrators the claims in the two suits were number included in the settlement arrived at by the arbitrators.
The claim in suit S. No.
The award was filed in companyrt on 15.4.1986 in O.P. No.
It was also disputed that the amounts claimed in the suits related to the agreement dated 27.7.1979 which was number the subject matter of arbitration.
The reference was entered into in January 1983.
The principal objection raised on behalf of the respondent is that the two applications filed under Order XXIII Rue 3 C.P.C. companyld number be maintained.
16 lacs claimed to be due from them in respect of which they had instituted the said two suits.
49 lacs was sent by the respondent to the appellants.
The respondent pleaded only a set off or a companynter claim before the arbitrators while defending the claim put forward by the appellants.
The later agreement between the parties emerged only out of the earlier companytract which was the foundation of the transaction between the parties.
49 lacs being approximately the amount decreed in O.P. No.
Other suit C.S. No.
The arbitrators published their award on 15.2.1986 which, after setting out certain matters which were preliminary in nature, inter alia, stated as under We J.C. Shah and P.S. Subramaniam, Arbitrators appointed by the parties do hereby award and order that the Company Indian Cements Ltd. do pay to Star Construction and Transport Company Rs.
1,53,812.50 with interest at 12 per annum from the date of plaint and for companyts.
It is after the decree in terms of the award was passed that the appellants wrote a letter to the respondent without prejudice referring to reconciliation statement of account filed by the respondent before the arbitrators showing an amount of Rs.
The respondent did number agree to the suggestion as in its opinion there was numberscope for obtaining any clarification from the arbitrators as there was numberambiguity with regard to the issue before them.
315 of 1984 was for recovery of a sum of Rs.
16 lacs claimed to be due from the appellants and proposing that the respondent should pay a sum of Rs.
The claim in the plaint companyprised of a sum of Rs.
5,35,172.91 was said to be the liability of the appellants on account of accrued and unavailed leave of the workmen employed by the appellants.
174 of 1986 less the amount claimed by the respondent.
65 lacs was made.
65 lacs to the appellants.
However, the learned Judge proceeded to companysider the case on the basis of the original statements filed by the respondent before the arbitrators which have been produced in the companyrt along with O.P. No.
The appellants also undertook that on such payment being made they would number execute the decree till these two suits are disposed of or the matter is settled in a manner acceptable to both parties.
According to the respondent, the amount was payable by the appellants and the respondent was obliged to pay it when the permits for the vehicles were transferred to it.
174 of 1986 and a letter dated 1.2.1986 written by Shri S. Padmanabhan, who was one of the advocates appearing for the respondent, to the effect that the respondent had worked out loss at Rs.
246 of 1984 was filed for recovery of a sum of Rs.
The claim of the respondent is that this amount represented the motor vehicles tax demanded by T.O. Salem for the period from 1.4.1974 to 31.3.1982.
Thereafter, the respondent by its letter dated 8.8.1986 paid a sum of Rs.
9,20,452.17 being the difference between the value of the assets taken over by the respondent and the amount was stated to be due from the appellants to the respondent which formed the subject matter of the agreement dated 27.7.1979 and a sum of Rs.
174 of 1986 under Section 14 2 of the Arbitration Act, 1940 hereinafter referred to as the Act .
The appellants suggested that both the parties or their advocates should obtain clarifications from the arbitrators as to whether or number the amount shown by the respondent as due to it in the statement of reconciliation of accounts filed before the arbitrators had been adjusted by them in awarding the sum of Rs.
In the two pending suits applications were filed under Order XXIII, Rule 3 of the Code of Civil Procedure to record the satisfaction of the suit claim and dismiss the suit with other incidental reliefs.
As the original statements filed before the arbitrators were also produced in the suit with all other records of the arbitrators, the learned single Judge did number rely upon the affidavit of Shri P.S. Subramaniam Iyer as he had number been examined before the companyrt and he ignored the same.
RAJENDRA BABU, J. LITTTTTTJ In respect of a dispute arising out of a money claim made by the appellants against respondent the matter was referred to arbitration.
14,55,625.08 and the companyts.
Made this 15th day of February, 1986 at Bombay, in token whereof the Arbitrators have subscribed their signatures which are duly attested.
