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1952 Supreme(All) 296

SANKAR SARAN, B.M.LAL
GAURI SHANKAR AND SONS – Appellant
Versus
UNION OF INDIA (UOI) (GENERAL MANAGER, E. I. RLY. , CALCUTTA) – Respondent


Advocates Appeared:
A.P.Pandey, J.Swarup

BRIJ MOHAN LALL, J.

( 1 ) THIS is an appeal by the plaintiff against an order passed by the learned Civil Judge of moradabad staying, under Section 34, Arbitration Act, (10 of 1940), a suit instituted by him against the Union of India.


( 2 ) THE appellant is a joint Hindu family firm carrying on the business of contractors. It entered into a contract to supply large quantities of stone boulders and stone chips to the East Indian railway at railway station Kansrao. Some differences arose between the appellant and the railway authorities. Certain letters were exchanged between them, but they served only to widen the gulf between the two. Eventually, the railway authorities cancelled the contract, removed the appellants name from the list of approved contractors and circulated that decision to all the station Masters with the result that the appellant became debarred from securing any contract from the railway administration in future. Thereupon, it instituted the suit which has given rise to this appeal to recover a sum of Rs. 3,787-5-3 as damages for breach of contract and a further sum of Rs. 1. 00,000-0-0 as compensation for libel. Its contention was that the railway authorities h

















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