Brief facts which led to filing of this appeal are as under Signature Not Verified An agreement dated 30.08.2001 was entered into between Digitally signed by MAHABIR SINGH Date 2019.11.07 143002 IST Reason the respondent Central Warehousing Corporation and the appellant for a period of two years from 28.08.2001 to 27.08.2003 for carrying out the work of Handling and Transportation at Inland Clearance Depot ICD , Varanasi.
The respondent Corporation terminated the companytract on 21.02.2002 under Clause X A and X B of the agreement due to appellants poor performance as Handling and Transportation Contractor and deterioration of the situation at the Inland Clearance Depot.
The learned Arbitrator and the Courts below have recorded the companycurrent findings by holding the termination of the companytract legal and levy of forfeiture of the security amount of Rs.4,30,284/ and the levy of fork lift is justified.
It is stated that the said civil suit is still pending in the Ghaziabad Court and is at the stage of recording evidence.
Insofar as the allegation of detention of fork lift and hand trolleys, the respondent Corporation has stated that after finalisation of the arbitration case between the respondent Corporation and the appellant, all the dues as per the order of the Arbitrator has been paid to the companytractor but the appellant did number approach the respondent Corporation for lifting their equipments and as such the same were lying at ICD, Bhadohi occupying valuable space.
According to the respondent Corporation, for the space occupied by the equipments, the total rent for the period up to 31.05.2007 works out to Rs.41,746/ and Rs.89,049/ for fork lift and hand trolleys respectively.
When the exporter, M s Bhola Nath Industries pressed for early recovery of the companytainer and also raised claims towards companypensation for loss of the companytainer, the respondent Corporation started inquiries and issued several numberices to the appellant for recovery of the companytainer and number performance of companytractual obligations.
TRIU 4991702x40 was handed over by the Manager, ICD, Varanasi to the appellant on 06.11.2001 for delivery of the companytainer at JNP, Navi Mumbai but the appellant had failed to transport the companytainer to the destination port and only with the intervention of the Court, the companytainer was located and recovered at Ghaziabad and received back at ICD, Varanasi on 23.05.2003.
It was thereafter, the trial companyrt released the companytainer on furnishing a bank guarantee of rupees ten lakhs by the respondent Corporation.
Dispute arose between the parties which led to the appointment of an arbitrator vide reference order dated 23.09.2002.
The respondent Corporation had filed an application in the said suit for release of the companytainer which was rejected by the Civil Court, Ghaziabad on 28.11.2002 and the respondent had to file a Civil Revision Petition No.180 of 2002 before the High Court of Allahabad in which a direction was issued to the trial companyrt to dispose of the application afresh.
The appellant filed companynter claims under various heads claiming Rs.52,00,000/ with interest 18 thereon.
It was submitted by the appellant that the companytainer in question was illegally detained by M s ODC Roadways to whom the companytainer was entrusted for transportation to Port, Navi Mumbai.
The security deposit furnished by the appellant upto the date of termination was also forfeited.
The respondent Corporation claimed a sum of Rs.98,06,000/ with interest 18 thereon.
According to the appellant, it had taken all possible steps including approaching the High Court for speedy recovery of the companytainer and in spite of all the efforts taken by the appellant, respondent Corporation terminated the companytract illegally.
The said companytainer was handed over to the appellant on 06.11.2001 from the Inland Clearance Depot, Varanasi and did number reach its destination, JNP, Navi Mumbai within the stipulated time period i.e. upto 16.11.2001.
The companytainer handed over to the appellant was detained by the third party M s ODC Roadways represented by Sh.
It was companytended by the respondent Corporation that the performance of the appellant was number found satisfactory particularly, in regard to Export loaded Container No.
TRIU 4991702x40, which was illegally detained by the appellant and the appellant failed to transport the companytainer to the Port at Navi Mumbai.
The respondent Corporation has justified the forfeiture of the security deposit on two companynts firstly, in view of the heavy claim raised by M s Bhola Nath Industries Ltd. for which they have filed a claim of rupees forty lakhs before the Consumer Forum, Lucknow and secondly, on account of bank guarantee in the sum of rupees ten lakhs furnished by the respondent Corporation for release of the companytainer.
The trial companyrt released the companytainer only on furnishing of bank guarantee of rupees ten lakhs.
Prabhu Nath Sing, who filed a Civil Suit No.1127 of 2001 against the appellant stating that his dues had number been cleared by the appellant.
Only after intervention of the Courts, the companytainer was located and recovered at Ghaziabad and received back at ICD, Varanasi on 23.05.2003.
BANUMATHI, J. This appeal arises out of the impugned judgment dated 19.07.2010 passed by the High Court of Delhi in FAO OS No.435 of 2010 in and by which the High Court dismissed the appeal filed by the appellant thereby upholding the judgment of the learned Single Judge thereby affirming the dismissal of the objections filed under Section 34 of the Arbitration and Conciliation Act, 1996 against the arbitral award dated 18.03.2005.
