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1987 Supreme(Ker) 66

V.SIVARAMAN NAIR, M.M.PAREED PILLAY
Food Corporation of India – Appellant
Versus
A. Mohammed Yunus – Respondent


Advocates:
P. K. Balasubramonian, for Appellants; M. P. Abraham, for Respondent.

Judgement

PAREED PILLAY, J. :- Appellants are the defendants in O.S. (Arb.) 137 of 1978 of the Sub Court, Trivandrum. The respondent (plaintiff) was entrusted with the work of handling and transporting foodgrains under a contract dt. 8-7-1976 by the appellants. The respondent undertook to complete the work at 373 per cent above the scheduled rates. Respondent claimed remuneration at the rate of 650 per cent. He moved the Sub Court for appointment of an arbitrator under S.20 of the Arbitration Act. The Court below appointed an arbitrator. Appellants challenged the order of appointment by filing M.F.A. 364 of 1980. That appeal was dismissed as time barred. The arbitrator entered on the reference and passed the award. The respondent moved the Sub Court to make the award into a decree. The appellants filed application under Ss.16 and 30 of the Arbitration Act (for short 'the Act') to set aside the award. The Sub Court negatived the contention of the appellants and made the award into a decree. This is challenged in the above M.F.A.

2. Contention of the appellants is that under Clause 19 of the contract only a person appointed by the appellants could function as arbitrator and that being




























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