Judgment

R. V. Raveendran, J.

This appeal by special leave relates to the validity of an arbitration award made against the respondent. The respondent (also referred to as 'the Corporation') entered into a contract dated 09.06.1984 with the appellant (also referred to as 'the contractor') for supply of 32 lakhs bamboo mats at a price of Rs. 3.35 per mat to be supplied by the appellant, inclusive of sales tax, F.O.R. destination. In pursuance of the said contract the respondent supplied 559554 mats. The contractor sent various communications requesting for joint inspection and payment.

As its demands were not complied with, at the instance of the appellant, the disputes were referred to arbitration. The claims of the contractor were as follows :

------------------------------------------------------------------------- (i) Amount due towards supplies (Price of 559554 mats at Rs. 3.35 each) Rs. 18,74,505.90 ------------------------------------------------------------------------- Less : Amount paid by respondent ------------------------------------------------------------------------- (Initial claim : Rs. 13,94,710.60 subsequently reduce