Delhi High Court M.A. Mistry vs Union Of India on 13 August, 1973 Equivalent citations: ILR1973DELHI916 JUDGMENT T.P.S. Chawla, J. (1) The sole issue in this is "WHETHERthe disputes (between the Parties) are within the scope of the arbitration agreement ?" (2) It arises on an application under section 20 of the Arbitration Act 1940 which was agreed to be. tried on affidavits. (3) By a contract of 14th January 1970 the petitioner, M. A. Mistry undertook to supply to the Union of India, the respondent, two varieties of canned mutton curried in specified quantities. Deliveries were to be completed by 18th March 1970. There is no dispute that the quantities contracted for were supplied within the time agreed, and that the petitioner was paid in full for the same. That is how the matter rested for a while. (4) Starting with a letter of 27th November 1970, the petitioner received a number of letters till February 1971, from the Assistant Chief Director of Purchase, stating that it had been reported by Q. M. G's Branch (ST7), Army Headquarters, New Delhi that certain quantities of the canned mutton curried supplied by the petitioner had "gone had and been declared unfit for human consumption within the warranty period". Each of these letters claimed a refund of the price of the quantities declared unfit. In addition, the petitioner was told that freight and incidental charges incurred by the Government on transport of the condemned quantities would also be recoverable from him. The petitioner in his replies repudiated these .demands and disputed that any part of the supplies made by him had at all become unfit for human consumption. That is how the controversy crystillized in the correspondence between the parties. It is unnecessary to refer to the correspondence in further detail. Sometime in March 1971, the petitioner asked for the disputes to be referred to arbitration. No action was taken on this request. Consequently, on 4th May 1971, the petitioner moved this application to obtain an order that the arbitration agreement be filed and that the disputes which had arisen between the parties be referred to arbitration. (5) Clause 19 of the Special Conditions of Contract contains the arbitration agreement between the parties. It is a lengthy clause and I will refer only to the relevant parts. The first sentence of the first paragraph reads: "INthe event of any question, dispute or difference arising under or out of or in connection with the conditions mentioned in this schedule or in annexure thereto or in General Conditions of Contract governing contracts placed by the Central Purchase Organisation of the Government of India (now under the Department of Supply), Form No. D.G.S.&D.68 (revised) contained in the pamphlet DGS&D 251967 print or touching or concerning the construction meaning. operation or effect thereof or of any matter contained therein or as to the rights and duties or liabilities of the parties hereto respectively or otherwise howsoever in connection with this contract (except as to any matters the decision of which is specially provided for in the conditions mentioned in this schedule or in annexure thereto or in General Conditions of Contract as aforesaid) the same shall be referred to the sole arbitration of any person appointed by the Secretary to the Government of India, Ministry or Department of the Government of India administratively dealing with the contract at the time of such appointment, or if there be no secretary, the administrative head of such Ministry or Department at the time of such appointment " (6) The rest of this paragraph is not material. In the next three paragraphs it is provided that : "THISclause does not apply to any matters the decision of which is specially provided for by any conditions applicable to this contract and it shall not be open to either party to refer any such questions or disputes to arbitration unless a specific reference to Arbitration is jointly signed by the contractor and the purchaser. If no request in writing for such arbitration is made by the contractor within a period of one year from the date of completion of contract all claims of the contractor under the contract shall be deemed to be waived and absolutely barred and the purchaser i.e. President of India shall be discharged and released of all his liabilities under the contract. (7) The date of completion of the contract shall mean and include : (I)the date when the goods are delivered according to the terms of delivery. (II)in case of warranty clause contracts the date when warranty expires. (III)in case where the contract is cancelled wholly or partly the date when the letter of cancellation is issued." (8) It was not disputed before me that the words of the arbitration clause were wide enough to encompass the disputes which had arisen. But, it was contended for the Union that these disputes were expr