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1979 Supreme(Del) 236

RAJINDAR SACHAR, S.B.WAD
SHANKAR VIJAY SAW MILL – Appellant
Versus
UNION OF INDIA – Respondent


R. Sachar

( 1 ) THE matter relates to the type of injunctions which can be issued by this court in arbitration proceedings arising out of contracts entered into between the D. G. S. and D. , Govt. of India and the Contractors. Doubt has been cast on some of the earlier decisions given by this court, in the order of F. S. Gill, J. dated 25. 8. 1976 who referred the matter of Chief Justice for constituting a larger bench and that is how the matter has come in before us.

( 2 ) THE petitioner is a registered firm and carries on the business of manufacturing and selling timber. The Director General of Supplies and Disposal (D. G. S. and D.) functions as a purchase organisation for the Government of India and makes purchases for the various departments. In response to an invitation to tender by D. G. S. and D. for the supply of Bijasal logsst Class, the petitioner made an offer to supply 1016 cubic metres at a flat rate of Rs. 669. 00 per cubic metre. The D. G. S. and D. issued an acceptance of tender No. TWI-6/107/61/721/26-10-65/paop dated 24. 12. 1973. The said acceptance of tender contained an arbitration clause. It appears that later on disputes arose between the petitioner and the D













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