( 1 ) AWARD dated 31st December, 1984 in the matter of arbitration between Union of India (DGS and D) v. Mis Adya Industries, Ludhiana was filed in Court by the sole arbitrator Ms. R. L. Lakshmanan and notices were issued to both the parties to file objections, if any, against the same. Objections against the award were preferred only by Union of India and not by M/s. Adya Industries which, however, controverted the objections of Union of India and from the pleadings of the parties, the following issues were framed :-

1. Whether the Arbitrator had committed legal misconduct as alleged in the objection petition ? 2. Whether there was an error apparent on the face of the award ? 3. Whether the award was otherwise invalid ? 4. Relief.

( 2 ) ISSUES Nos. 1 to 3 : The perusal of the award shows that the arbitrator found that the contractor committed breach of the contract inasmuch as he had failed to supply the stores as per the terms of the contract but he nevertheless dismissed the claim of Union of India for awarding a sum of Rs. 1,35,806. 00 as loss suffered by Union of India on account of placement of the contract for part of the stores on another firm at the risk and