Award by Umpire

Award by Umpire

In the matter of the Arbitration and Conciliation Act 1996

And

In the matter of Arbitration Agreement dated …………… between AB and CD

Whereas by an Agreement in writing and/or submission dated ……………… day of ……………… made between AB residing at ……………… and CD residing at ……………… the matters in dispute and differences between them as specified therein were referred to the decision and arbitration of X and Y as Joint Arbitrators who thereafter appointed me Z, as the Umpire at the commencement of the Reference on the ………………… day of …………………….

And whereas the said X and Y having disagreed and differed as between themselves over the subject-matter of the Arbitration and the Award to be made thereon during the pendency of the proceeding I the said Umpire took upon myself the reference.

From the statement of claim counter-statement and documents the Arbitrators raised two issues namely,

(a)  whether AB received 500 M.T. of Bitumen, and

(b)  whether CD is entitled to carrying charges amounting to Rs. 2 lakhs.

At the hearing before the Arbitrators CD wanted to raise a third issue as to whether CD was entitled to additional carrying charges from the specified place of delivery to AB to the place where actual delivery was made at the direction of AB. The Arbitrators did not agree to raise the issue and as such the matter has come before me.

I have gone through the statement of claim, counter-statement documentary evidence produced by the parties and I have considered the oral evidence adduced by AB and CD before me.

It is admitted by AB in his oral evidence that the carriage contract was from Haldia to the residence of AB where he has a godown and the carrying charges was fixed at Rs. 2 lakhs for a distance of 200 miles. At the direction of AB the goods brought by CD to the address of AB was diverted to another place 100 miles away with direction to deliver the goods to the godown-keeper there. Admittedly CD carried the goods from the residence of AB to the said godown 100 miles away, and delivered the same to the godown-keeper there. The godown-keeper there refused to give any receipt. AB also did not give any receipt for the goods delivered by CD.

In view of the pleadings, documentary evidence on record and the oral evidence of AB and CD the following issues arise:

(a)  whether AB received 500 M.T. of Bitumen;

(b)  whether CD is entitled to the agreed carrying charges of Rs. 2 lakhs for the distance of 200 miles from Haldia to the residence of AB;

(c)  whether CD is entitled to further carrying charges of the further 100 miles from the residence of AB to the specified godown in proportion to the agreed rate;

Issue (a). From the evidence on record and as admitted by AB I hold that CD carried 500 M.T. of Bitumen and delivered the same to or to the Order of AB and AB received the same.

Issue (b). From the evidence and oral evidence of the parties and admission of AB I hold that CD is entitled to the carrying charges from Haldia to the residence of AB a distance of 200 miles at the agreed rate of Rs. 2 lakhs.

Issue (c). From the documentary evidence and also the oral evidence of the parties and admission of AB I hold that CD carried the goods for extra 100 miles from the residence of AB to the godowns specified by AB and this CD did not do gratuitously but under an implied term that CD would be paid at the agreed rate of Rs. 2 lakhs per 200 miles. I hold that CD is entitled to payment for the extra 100 miles carriage of the goods at the request of AB at the agreed rate.

I therefore award against AB in favour of CD Rs. 2 lakhs for carriage of 500 M.T. of Bitumen from Haldia to the residence of AB and offering to deliver the same.

I hold that CD carried 500 M.T. of Bitumen from Haldia to residence of AB and thereafter another 100 miles at the direction of AB to the godown and delivered the said goods. I award Rs. 1 lakh in favour of CD and against AB for such extra carriage at the agreed rate of Rs. 2 lakhs for 200 miles.

I award interest at 18% per annum on the said sums of Rs. 2 lakhs and Rs. 1 lakh from the date of filing of statement of claim till realisation.

I award the cost of Rs. 20,000 in favour of CD and against AB.

Dated this …………… day of …………

Umpire

(Name Z)

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