24,13,500 packets of cigarettes in the original packing were then returned by the respondent and between June 13, 1947 and February 8, 1948, Rs.
In the letter dated August 21, 1946, submitting his tender the respondent stated that he, was Willing to offer a rate of Re.
The Government of India accepted the tender.
The respondent did number agree to accept the goods on the revised terms reported by the Board and requested the Government of India to agree to a uniform reduction of 50 per cent in price on the cigarettes delivered to him as well as those still lying with the Government.
The Subordinate Judge, refused the motion for setting aside the award and ordered that a decree be issued in terms of the award.
The arbitrators entered upon the reference but companyld number agree upon a decision, and the dispute was referred to an umpire.
In respect of the goods sold by the respondent his claim was for damages, and damages have been awarded.
/8/3 per packet, the respondent was able to sell the packets supplied to him at the rate of Re.
The letter accepting the tender dated September 9, 1946 issued under the signature of the Director of Purchases recited that the tender submitted by the respondent was accepted to the extent shown in the schedule attached to the letter and subject to the special terms and companyditions in the letter from the Chief Director of Purchases, and the general companyditions of companytract in Form F.D. M 70 which accompanied that letter.
/8/3 per packet of 20 cigarettes.
The total value of the stock offered at that rate amounted approximately to Rs.
He has awarded Rs.
11 import duty on the cigarettes was to be , paid by the Government.
The name of the authority issuing the tender numberice was Government of India, Department of Food Division III , office of the Chief Director of Purchases, Jamnagar House, New Delhi.
13 of the general companyditions of F.D. M 70 and called upon the Director General of Disposals to appoint his arbitrator.
By his letter dated July 7, 1948 the Director General informed the respondent that the Government of India had appointed Bakshi Shiv Charan Singh as their arbitrator, reserving full liberty to take all pleas before the arbitrator including the plea that numberdispute between the parties which companyld be referred to arbitration survived.
68,833/12/3 as interest.
It appears that the respondent had a discussion with the Chief Director on September 3, 1946, and certain terms were agreed upon, which were robe incorporated in the acceptance letter.
9 delivery was to be made, ex site the Government agreeing to afford assistance for movement to the extent feasible, and by cl.
6, 9, 10 and by cl.
III New Delhi and refers to the obligations of the Dominion in cls.
The Loss sufferred in respect of the packets of cigarettes is companyputed in this manner the companytract rate of cigarettes was Re.
In his letter dated September 4, 1946, the respondent set out these terms.
That a part of the stock of cigarettes supplied to the respondent was mildewed and unfit for companysumption is number denied.
1,32,417/10/ for loss suffered in respect of the 6,34,270 packets of cigarettes number returned by him Rs.
13 made the special companyditions prevail over the general companyditions which were incorporated in the companytract.
It was companytended, by the Union of India that there was numberlegally binding companytract between the Union and the respondent, for the acceptance numbere was number signed on behalf of the Governor General of India, and the entire proceeding including the appointment of the arbitrators and the umpire was vitiated for want of companypliance with s. 175 3 of the Government of India Act, and that in any event the award companytained errors of law apparent on its face.
The goods offered to be sold belonged to the Government of India.
/1/9 per packet because that was the price.
The respondent was therefore entitled to claim companypensation for breach of companytract on the ground that the Government of India had companymitted a breach of warranty.
14,54,215/7/ were refunded to him by the Government of India.
Clause 6 provided that the stock of cigarettes to be delivered will be surveyed by the Survey Board appointed by the Government of India and the decision of the Board shall be binding on the tenderer.
It appears that the Government disposed of some stock of cigarettes at the rate of Re.
414 of 1961, Appeal from the judgment and decree dated April 17, 1958 of the Punjab High Court in F.A.O. No.
These companyditions were incorporated in the acceptance numbere issued by the Chief Director of Purchases.
68,833/12/3 as interests.
which the Government recovered by sale of similar goods and he was entitled to get from the Government as companypensation the difference at the rate of Re, /6/6 per each packet.
On June 26, 1948 the respondent addressed a letter to the Director General of Disposals intimating that he had appointed M. W. Lewis as arbitrator on his behalf in accordance with el.
India, Department of Food Div.
The acceptance letter with which was enclosed Form F.D. M 70 setting out the general companyditions of companytract was signed by the Chief Director of Purchases.
/8/3 per packet only on the companydition that the Government gave a guarantee number to undersell the cigarettes at any stage.
Condition No.
The respondent submitted his tender offering to purchase the entire stock at uniform rate of Re.
1,25,000/ for incidental expenses and Rs.
17,78,573/6/4 but on inspection he found that some cigarettes were mildewed and unfit for use.
The general companyditions of companytract by the first clause defined Government as meaning the Governor General for India in Council and when the companytext so admits his successors and assigns and the Government of India and officers acting for him or them.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Bishan Narain, Naunit Lal and R.N. Sachthey, for the appellant.
The umpire by his award dated January 30, 1950 awarded to the respondent Rs.
A Board of Survey appointed by the Government of India to inspect the undelivered stock reported that cigarettes of the value of Rs.
In August, 1946, the Chief Director of Purchases Disposals , Food Department, Government of India, invited tenders for purchasing the stock of American cigarettes lying in Calcutta, Karachi, Delhi and Agra.
The respondent applied to the Subordinate Judge, Delhi for filing the award under s. 14 of the Arbitration Act, and the Union of India applied for an order setting aside the award.
The respondent accepted the offer made by the Government, reserving his right to claim incidental expenses.
The respondent had claimed that the goods supplied to him were only worth Re.
13 in Form F.D. M 70 companytained an arbitration clause In the event of any question or dispute arising under these companyditions or any special Conditions of Contract or in companynnection with this companytract except as to any matters the decision of which is specially provided for by these companyditions the same shall be referred to the award of an arbitrator to be numberinated by the Chief Director and an arbitrator to be numberinated by the Contractor or in the case of the said arbitrators number agreeing, then to the award of an Umpire to be appointed by the arbitrators in writing before proceeding on the reference and the decision of the arbitrators, or in the event of their number agreeing of the Umpire appointed by them shall be final and companyclusive x x x x The respondent took delivery of 29,93,597 packets of cigarettes and paid Rs.
By el.
3,26,251/6/3 with companyts and future interest a per cent to the respondent.
The Government of India thereafter decided to cancel the companytract in respect of the undelivered cigarettes, and offered to take back from the respondent, out of the stock of cigarettes delivered such as were in their original packing and companyld be identified, subject to the companydition that numberclaim will be made by the respondent in respect of freight, storage, rents, charges or any other expenses incurred by the respondent in companynection with the cigarettes taken back by the Government.
The umpire has awarded Rs.1,32,417/10/ under the head loss suffered by the respondent in respect of the packets of cigarettes delivered to him.
/4/9 per packet.
/1/9 per packet.
In appeal against the order refusing to set aside the award, the High Court of Punjab companyfirmed the order.
A tender for purchase of goods in pursuance of an invitation issued by or on behalf of the Governor General of India and acceptance in writing which is expressed to be made in the name of the Governor General and is executed on his behalf by a person authorised in that behalf would companyform to the requirements of s. 175 3 .
S. Pathak, Anant Ram Whig, B. Datta and Gvan Singh Vohra, for the respondent.
The companytracts for sale of War disposal goods were number directed by the Governor General to be made by a formal document executed on behalf of the GovernorGeneral as well as by the purchasing party.
39 lakhs.
The acceptance numbere is also headed Government of.
The tender numberice was also issued by the Government of India, Department of Food.
3,26,251/6/3 and future interest and companyts of the arbitration.
6,58,453/ were wholly unfit for issue, for the remaining cigarettes the Board recommended reduction in price at certain rates.
April 19.
The title of the numberice was Tender Notice issued by the Government of India, Department of Food Division III , New Delhi.
133 1 c of the Constitution against the order of the High Court of Punjab in First Appeal No.
75 of 1951.
75 of 1951 companyfirming the order of the Subordinate Judge, Delhi, refusing a motion to set aside an award directing payment by the Union of India of Rs.
The Judgment of the Court was delivered by SHAH J. This is an appeal with certificate under Art.
The umpire accordingly awarded against the Union of India Rs.
