An arbitration award can be set aside if it is found to be without evidence, perverse or unreasoned.

Soumen Sen, J.

1. This is an application for setting aside of an award dated 23rd February, 2005. The respondent was the claimant.

2. The arbitration proceeding arose out of a reference made on the basis of an order dated 13th March, 2003 passed in AP No.177 of 2001 in an application filed by the respondent under Section 11(6) of the Arbitration and Conciliation Act, 1996. The arbitrator entered reference on 31st May, 2003.

3. In the arbitration proceeding, the petitioner has made a claim for a sum of Rs.1,30,63,295/- by way of damages or compensation on account of wrongful withholding of the claimant’s godown for the period from 1st June, 1997 to 30th November, 2000 and a sum of Rs.2,87,960/- by way of damages or compensation on account of expenses incurred by the claimant as ex-agent for running the establishment of the godown during the said period.

4. The respondent/claimant was appointed as agent of the petitioner under an agreement dated 2nd June, 1975 for the purpose of storing food grains of FCI up to a capacity of 12000 M.T. on the terms and conditions contained in the said agreement.

5. The claimant in terms of the agreement had taken godowns on rent at 493/B, G.T. Road, Shibpur, Howrah in the premises of Bengal Jute Mill measuring an area of 73000 Sq.ft. with high ceiling, adequate for storage of 12000 M.T. of food grains at a time. In pursuance of the said agreement, the claimant deposited with the respondent a sum of Rs.10,000/- as security deposit. The claimant was required to handle and receive only such consignments and number of bags of food grains as were allotted by the petitioner. The claimant was not authorized to store any food grain until and unless allotment was made by the respondent in favour of the plaintiff. In pursuance of the agreement diverse quantities of bags of food grains of various sizes were allotted to the claimant from time to time and upon receipt of allotment or authorization from FCI, the claimant removed such food grains from the Railway siding and stored the same at the godown for subsequent delivery to the persons authorized and nominated by the FCI after receiving dispatch instructions issued by the FCI to the claimant. It was alleged that on 10th October, 1988, a quantity of only 1900 M.T. of food grains was lying and stored at the godown, and the major portion of the godown remained unutilized. By reason of non-allotment of food grains by the Food Corporation of India, the claimant was suffering loss and damage day after day, particularly because the petitioner did not permit the claimant to store goods of other parties, so long food grains belonging to FCI were still in the godown. Pursuant to the aforesaid, the claimant by a letter dated 2nd November, 1991 terminated the said agreement after giving two months prior notice to the respondent. In terms of the said notice, the agreement would stand terminated on 2nd January, 1992. The claimant in the meantime invoked the arbitration clause of the agreement, that is, Clause 41 of the Agreement before the learned Assistant District Judge, 3rd Court, Howrah. In such proceeding an order was passed on 19th February, 1990 appointing an arbitrator to adjudicate the disputes and differences between the parties. The claims of the claimant in the said arbitration proceedings against the respondent was for the period from 2nd June, 1975 to 31st May, 1997.

6. The claimant alleged that the said godown was without any operation since 1991 but since then the respondent did not remove the stock including the damaged rice for several years and the claimant was unable to use the said godown. The claimant by a letter dated 18th May, 1998 requested the respondent for taking necessary steps for lifting the said stocks from the godown of the claimant. Despite the receipt of the said letter, the respondent neither took steps in terms thereof, nor gave any reply thereto. The said request was again repeated by a letter dated 25th September, 1999. The c