TaxTMI 
TaxTMI 
2019 (11) TMI 372
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.....2005. 2. Brief facts which led to filing of this appeal are as under:- An agreement dated 30.08.2001 was entered into between the respondent-Central Warehousing Corporation and the appellant for a period of two years from 28.08.2001 to 27.08.2003 for carrying out the work of Handling and Transportation at Inland Clearance Depot (ICD), Varanasi. The respondent-Corporation terminated the contract on 21.02.2002 under Clause X(A) and X(B) of the agreement due to appellant's poor performance as Handling and Transportation Contractor and deterioration of the situation at the Inland Clearance Depot. The security deposit furnished by the appellant upto the date of termination was also forfeited. 3. Dispute arose between the parties which led....
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....ted by the appellant that the container in question was illegally detained by M/s ODC Roadways to whom the container was entrusted for transportation to Port, Navi Mumbai. According to the appellant, it had taken all possible steps including approaching the High Court for speedy recovery of the container and in spite of all the efforts taken by the appellant, respondent-Corporation terminated the contract illegally. 5. Taking into consideration the claim and grounds for termination and also the reply filed by the appellant, the Arbitrator vide award dated 18.03.2005 upheld the termination of the contract as valid and decided certain claims of the respondent in its favour. Certain counter claims of the appellant were also allowed by the le....
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.... the counter claim No.3. In support of its counter claim No.4, the appellant averred that for successful executing of the contract, it had employed one fork lift and four hand trolleys at Inland Clearance Depot, Varanasi, which were owned by them and the same have been illegally detained by the respondent. On behalf of the respondent-Corporation, it was contended that the forfeiture of the security deposit was justified on the following reasons - firstly in view of the heavy claim raised by M/s Bhola Nath Industries before the Consumer Forum, Lucknow and secondly, on account of bank guarantee to sum of rupees ten lakhs furnished by the respondent for release of the container. The respondent submitted that a claim of rupees forty lakhs was l....
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.... bank guarantee is untenable and prayed for allowing of the appeal. 9. Insofar as the forfeiture of security deposit is concerned, Mr. K.K. Tyagi, learned counsel for the respondent-Corporation has submitted that M/s Bhola Nath Industries, whose containers remained missing for a long time on account of the conduct of the appellant had lodged a claim against the respondent for a sum of rupees forty lakhs and though the same has been dismissed for non-prosecution, the same may be restored at any time at the instance of the complainant M/s Bhola Nath Industries Ltd. It was therefore, contended that the forfeiture of the security amount and fork lift cannot be said to be arbitrary or unjustified and in accordance with the terms of the contrac....
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....ath Industries Ltd. for which they have filed a claim of rupees forty lakhs before the Consumer Forum, Lucknow and secondly, on account of bank guarantee in the sum of rupees ten lakhs furnished by the respondent-Corporation for release of the container. The learned Arbitrator and the Courts below have recorded the concurrent findings by holding the termination of the contract legal and levy of forfeiture of the security amount of Rs. 4,30,284/- and the levy of fork lift is justified. 12. The container handed over to the appellant was detained by the third party-M/s ODC Roadways represented by Sh. Prabhu Nath Sing, who filed a Civil Suit No.1127 of 2001 against the appellant stating that his dues had not been cleared by the appellant. The....
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....per the terms of the agreement at Clause 5(g) and the same was accepted by the arbitrator. As held by the learned Arbitrator, the appellant was given a contract to assist in smooth running of international business of import and export and to have the time management on top priority. Failure to transport the container to the Port at Navi Mumbai resulted in missing of the export schedule. Taking into consideration the failure of the appellant to deliver the container at the Port at Navi Mumbai and the time taken in recovery of the container and the expenditure incurred by the respondent- Corporation in particular, furnishing of bank guarantee of rupees ten lakhs, the detention of the equipments cannot be said to be arbitrary or beyond the te....