-1- IN IN IN THE THE THE HIGH COURT OF JUDICATURE AT BOMBAY HIGH COURT OF JUDICATURE AT BOMBAY HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ARBITRATION ARBITRATION ARBITRATION PETITION NO.467 OF 2004 PETITION NO.467 OF 2004 PETITION NO.467 OF 2004 Union of India through General Manager, Central Railway, Mumbai CST ... Petitioners v/s M/s Indian Scrap Corporation ... Respondents Mr T.J. Pandian for Petitioners. Ms Deepa Chavan with Ms Rajani Divekar i/b M/s Little and Co. for Respondents. CORAM : D.K. DESHMUKH J. DATE : 29TH AUGUST 2005. -2- P.C. :- 1. By this petition, the petitioners challenge the award made by the Sole Arbitrator directing the petitioners to pay damages. At the outset, it has to be stated that both the learned counsel appearing for parties are agreed that there was no justification whatever for the Arbitrator to issue a direction to the petitioners to deliver the goods sold because it was not a part of statement of claim made by the respondents. 2. The learned Arbitrator by the award has held that the petitioners have committed breach of the contract by not giving delivery of the material which was sold by the Railways and therefore, have held that the respondents are liable to pay damages. But, admittedly, without the respondents leading any evidence to prove the measure of damages suffered by them, the learned Arbitrators have directed the petitioners to pay damages on the assumption that that amount has been invested in Kisan Vikas Patras. The respondents have neither filed any affidavit nor have they entered the witness box to depose that had they not deposited this amount with the Railways, they would have invested it in Kisan Vikas Patras. It is necessary to lead evidence -3- for the claimants to prove the measure of damages suffered by it. In the present case, the respondents have not led any evidence to prove the measure of damages suffered by them. Therefore, the learned Arbitrators are not justified in awarding any amount towards damages. Taking overall view of the matter therefore, it is clear that the entire award suffers from non-application of mind and also travels beyond the scope of reference made to the Arbitrators. Therefore, the award impugned is liable to be set aside. Petition succeeds and is allowed, the award impugned is set aside. The respondents are directed to pay costs of the petition to the petitioners as incurred by the petitioners. . Parties to act on the copy of this order duly authenticated by the Associate / Personal Secretary of this Court as true copy. . Certified copy expedited. ----------------