2025:CGHC:44813 Digitally signed by AVANISH KUMAR NAFR PATHAK Date:

2025.09.03 HIGH COURT OF CHHATTISGARH AT BILASPUR

15:08:56 +0530 RESERVED ON 6-8-2025 PRONOUNCED ON 3-9-2025 ARBA No. 7 of 2018

1 - P.D.Goyal S/o Late Nandkishore Goyal Aged About 59 Years Occupation- Transport Contractor, R/o Vishrampur, District Surguja (Now District Surajpur), Chhattisgarh.

... Appellant versus

1 - South Eastern Coalfields Limited, Through The Chairman- Cum-

Managing Director, Seepat Road, Bilaspur, Chhattisgarh.

2 - The Chief General Manager Hasdeo Area, S E C L, Jhagrakhand, Manendragarh, District Koriya, Chhattisgarh.

... Respondents For appellant : Mr. D. N. Prajapati, Adv.

For Respondents : Dr. Sudeep Agrawal, Adv. (Hon’ble Mr. Naresh Kumar Chandravanshi, J)

CAV Order

1. Appellant/applicant has preferred this Arbitration Appeal under Section

37 of the Arbitration and Conciliation Act, 1996 (henceforth, referred to as ‘Act of 1996’) challenging the order dated 6-1-2018 passed in Civil Suit No. 6A/2015 by the District Judge, Baikunthpur, Distt. Korea (CG), whereby the application/civil suit filed by the appellant/applicant under Section 34 of the Act of 1996, has been dismissed.

(hereinafter parties shall be referred to as per their status before the District Judge)

2. Brief facts of the case, as projected by the applicant, are that, he filed an application under Section 11 of the Act of 1996 stating inter alia that, the respondents entrusted him transportation of 6.10 lakh tones coal from South Jheemar/Malga Colliery to Ramnagar/Rajnagar RO New CHP, at the rate of Rs. 14.80/- per tone. Work order was issued on 14-9-1994. Period of contract was 12 months. In the work order, distance from loading point to unloading point was mentioned 8.7 km., but actual distance between said places was 9.5 km instead of 8.7 km. In this regard, many times, applicant raised objections by making written communication to respondents, but they never responded. Since wrong distance was mentioned in the work order, therefore, till completion of work period (12 months), applicant transported only 3,90,412.14 tones coal, as he was compelled to transport aforesaid coal for 600 km more. In the contract period, rate of diesel was increased from Rs. 8.10/- per litre to Rs. 8.17/- per litre from 12.4.1994. Despite specific term in contract to pay increased rate of diesel, respondents did not pay said difference amount. It is further averred that, since respondents closed Ramnagar siding, therefore, applicant was compelled to transport coal to Rajnagar RO New CHP, but unloading facility was not adequate at that place, therefore, it takes too much time to unload the vehicle(s) and get receipt. Upon repeated communication made in this regard, applicant was directed to unload the coal on the ground. Despite that, respondents have illegally imposed penalty of Rs. 51,826/- and deducted it from final bill, for unloading coal on the ground. Because of all aforesaid reasons, applicant could not transport contractual quantity of coal, hence he suffered loss of 10% income in business, as he could not transport 2,19,588 tones coal. Period of agreement was completed on 13-8- 1995, hence as per agreement, amount of final bill was to be paid within 6 months, but they paid amount of final bill on 30-7-1998 i.e. after about 3 years from the date of completion of work period, therefore, applicant has sought 18% interest in the amount of final bill Rs. 1,78,290.28/-. Thus, applicant filed aforesaid application claiming Rs. 6,18,816.64/- in following heads against the respondents :-

(a) Penalty amount Rs. 51,826.64.

(b) Difference in diesel rates amounting to Rs. 7,000.00.

(c) Damages for not transporting coal Rs. 3,24,990.00. (d) Interest for three years Rs 1,35,000.00. (e) Mental agony and loss of business Rs. 1,00,000.00 Total - Rs. 6,18,816.64.

3. The respondents filed their joint reply, in which, they accepted agreement and work order, part of pleading, mentioned by applicant in para 1 to 5 of his a