Important Point
Where the award was a non-speaking award and the claims made by the parties have been borne in mind by the arbitrator in passing the award and the arbitrator had not omitted any claim made by any of the parties, the High Court was not justified in modifying the award on an application made by a party to the award that its claim for adjustment of a particular item was not considered by the arbitra­tor.

Judgment

Rajendra Babu, J.-The District Judge, Jaipur City, appointed a sole arbitrator to adjudicate upon the disputes that had arisen between the parties to these appeals in relation to a transaction by which the appellant had agreed to supply 3290 k.ms. of “PANTHER Conductor” to the respondent. The appellant filed a detailed statement of claims and we may summarise the same as follows :-

(i) Outstanding bills 5,21,143.30

(ii) Steel price variation 13,23,661.93

(iii) Amount of Bank                   ` Guarantee 15,67,278.54

34,12,023.77

LESS

(i) Raw Material - 11,38.800.48

(ii) Cash advance 3,29,348.83

- 14,68,149.31

Rs. 19,68,149.31

The respondents also made claims which are as follows :-

(i) Damages on account of risk  purchase 28,55,555.17

(ii) Balance 20% cash advance 3,29,581.00

(iii) Interest @ 18% on Rs. 3,29,581.00 1,14,030.50

(iv) Interest charges @ 18% on 11,28,018 3,15,134.23

(v) Recovery on account of  excess payment @ 144/-  on 2652 km. 3,93,321.35

40,51,433.08

The respondent further stated that the appellant would be given adjustment on return of the following raw material failing which should be ordered to pay a sum of Rs. 47,27,771.20:-

(i) Aluminium steel in  the form of 3/8" size  Aluminium wire rods ..288.957 MT

(ii) H.T.G. Steel wire  3.0 mm size ..186.400 MT

The arbitrator awarded the claims of the parties in the following terms:-

Claim of claimant Amount awarded -petitioner Claim No.

(1) 5,21,143.30 3,29,806.89

(2) 13,23,661.93               Nil

(3) 6,99,816.20 Nil

(4) 10,00,000.00 (damages) Nil

Claim of Respondent

Amount claimed Amount awarded

(1) 3,29,581.00 3,29,348.83

(2) 1,14,030.00 Nil

(3) 3,93,321.35              Nil

Damages for the                               purchase of 478                               km from market 33,93,800-40

Being the contract  price of 478 km. 19,39,932-60

Balance payable by  Company 14,53,932.60

Finally, the arbitrator gave the following amount :-

Company Respondent

3,29,806.89 3,29,348.83

14,53,932.60

17,82,781.43

(-) 3,29,806.89

Net payable by Company 14,53,474.54

2. It was further directed that since the Government has already recovered Rs. 15,67,278.54, therefore, after adjusting Rs. 14,53,474.54 the Company is entitled to receive Rs. 1,13,804/- plus interest @ 16%.

3. A letter was sent by the advocate for the respondent on the date whenthe award was made known to the parties pointing out that certain amount of adjusting the cost of raw material had not been awarded in favour of the respondent and it is stated therein that this apparent error should be corrected in the award. The arbitrator acknowledged the objection having been raised and a letter being sent to him but he expressed his helplessness to consider the same as after pronouncement of the award he had beco