TaxTMI 
TaxTMI 
1965 (3) TMI 98
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....ron sheets for the period from July, 1944 to May, 1949. The plaintiff alleged that on February 11, 1944 the Union of India placed an indent for the supply of 1,20,000 drums. The raw materials comprising of 600 tons of P.C.R.C.A. iron sheets were to be supplied by the defendant to the plaintiff and the agreement was that the plaintiff was to be paid fifteen annas as the cost of fabrication for each drum. In pursuance of the contract the defendant supplied 600 tons of iron sheets to the plaintiff in July, 1944. The sheets were unloaded and stocked on the premises of the plaintiff's factory at Jullundur. But, on August 21, 1944, the defendant cancelled the contract by its letter--Ex. P-18, dated August 21, 1944 and the plaintiff was inform....
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....ve. It was also pleaded that the suit was barred by limitation. By its judgment, dated May 4, 1953 the trial Court granted the plaintiff a decree for a sum of Rs. 9,440 against the Union of India. The plaintiff took the matter in appeal before the Punjab High Court in Regular First Appeal No. 121 of 1953. By its judgment, dated March 31, 1960, the High Court partly allowed the appeal of the plaintiff and granted him a decree for Rs. 27,525-5-0 against the defendant as detailed below: Rs. as. p. (a) Godown rent @ Rs. 300 per month for a period of 59 months from July, 1944 to the end of May, 1949 17,700 0 0 (b) Chowkidar's salary 2,360 0 0 (c) ....
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.... is evidence that at the time of Mr. Mongia's inspection the weight of iron sheets stored was 498 tons, though the quantity of iron sheets originally stored was 600 tons. The High Court has also taken into consideration the additional services rendered by the plaintiff in looking after the iron sheets during the period of storage. We do not, therefore, find it possible to accept the contention of the appellant that the High Court was not justified in fixing the rent at Rs. 300 p.m. as godown charges. As regards the floor space, the High Court has remarked that the calculation of the trial Judge for the surface area was not correct. It appears that the trial Court accepted the evidence of Man Mohan Lal--D. W. 7--that the floor space occu....
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....aimed in the plaint. In our opinion, the argument of learned Counsel for the appellant on this point is well founded and must be accepted as correct. It is well established that interest may be awarded for the period prior to the date of the institution of the suit if there is an agreement for the payment of interest at fixed rate or if interest is payable by the usage of trade having the force of law, or under the provisions of any substantive law entitling the plaintiff to recover interest, as for instance, under Section 80 of the Negotiable Instruments Act, 1881, the Court may award interest at the rate of 6 per cent per annum, when no rate of interest is specified in the promissory note or bill of exchange. There is in the present case ....
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.... In that case, a contractor entered into a contract with the Dominion of India for the supply of bricks. A clause in the contract required all disputes arising out of or relating to the contract to be referred to arbitration. The dispute having arisen, the matter was referred to arbitration and the arbitrator gave an award in the contractor's favour, he Union of India which has succeeded to the rights and obligations of the Dominion, contested the award on various grounds one of which was the liability to pay interest on the amount awarded. Bose, J., in delivering the judgment of the Court, observed that the interest awarded to the contractor could not, in law, be awarded. He pointed out that the arbitrator is not a Court within the mea....
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....ct on grounds of equity. In the absence of any usage or contract express or implied, or of any provision of law to justify the award of interest, the arbitrator cannot award interest by way of damages caused to the respondent for wrongful detention of money. Applying the principle to the present case, it is clear that the plaintiff is not entitled to a decree for interest to the extent of Rs. 2,974-2-0 claimed by him in the plaint and, therefore, the decree granted by the High Court in favour of the plaintiff should be reduced to this extent. 7. In Civil Appeal No. 44 of 1963 preferred on behalf of the plaintiff the main argument put forward by Mr. C. B. Aggarwala was in regard to the calculation of the storage charges for the iron sheet....