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M/S. SURAJMULL NAGARMULL versus STATE OF WEST BENGAL

Citation: [1963] 2 S.C.R. 163 · Decided: 17-04-1962 · Supreme Court of India · Bench: S.K. DAS · Disposal: Dismissed

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Judgment (excerpt)

2 s.c.R. 
SUPREME OOURT REPORTS 
163 
depend on the decision of the Jaipur:Kotah scheme. 
If that scheme is upheld, on re-hearm~, the exclu-
sion will continue. But if that scheme 1s not upheld, 
the position may have to be reviewed in connection 
with. this portion of the Ajmer-Kotah route. In the 
circumstances no relief can be granted to the appel-
lants of the Ajmer-Kotah route at this stage .. 
The appeals 1're hereby dismissed with costs-
one set of hearing costs. 
Appeals dismissed. 
M/S. SURAJMULL NAGARMULL 
v. 
STATE OF WEST BENGAL 
(S. Jr. DAS, M. HIDAYATULLAH and J. O. SHAH, JJ.) 
Arbitration-Arbitrator appointed und.r the Defence o/ 
India Act, if a court-Righl to appeal against the award, if and 
when, exercisable-Defence of India Act, 1939 (35 of 1939), 
"· 19(1), 19(1)(!) a7;Zd (g), J9(3)(c)-Defence of India Rules, 
1939, rr. 75A, 19, second proviso. 
' 
The appellants were tenants of three warehouses and 
vacant land, which were used for storage of jute belonging 
to the appellants. By an order issued under r. i5A of the 
Rules framed under the Defence of India Act, 1939, the 
warehouses were requisitioned 
by the Governme11t. An 
arbitrator was appointed unders. 19(1)(b) of the Defence of 
India Act to fix the amount of compensation payable to the 
owner. The claim of the appellants to compensation for 
loss of earning, and for "loss of business" was rejected by 
the arbitrator. An appeal filed by the appellants against 
the arbitrator was dismissed by the High Court at Calcutta 
as not maintainable. 
' 
Held, that the arbitrator appointed under s. 19 of the 
Defence of India Act is not a court, nor is a tribunal subject 
f 
lo to the appellate jurisdiction of the High Court. By the Act 
, a right to appeal against the award of the arbitrator is 
R,:rwat/, Vtrmn 
·-
State of Rajast'i:mi 
Wanelloo J. 
/96J 
April 17 
1962 
MIJ. Surajmul1 
}( •!tm1tull 
•• 
Slet• t1f It' 1st &ngoJ 
SAoh J. 
164 
SUPREME COURT .REPORTS (1963) 
conferred. but the exercise of that right is restricted in the 
m.inner prescribed by the rules fr3med under the Act. 
By 
Ilic second proviso tor. 19 an appeal does not lie against an 
a\\'ar<l of the :lrbitrator where the amount of compensation 
awarded doe' i:ol exceed Rs. 5000/-
An award dismissing 
the claim in its cntirctv is one in which the amount awarded 
docs not exce.d Rs. 5000,-and therefore an appeal lay to 
the High Court. 
C1vn. APPELLATE JumsIHCTION : Civil Appeal 
No. 403 of l!l:l!l. 
Appeal by 8pecial leave from the judgment 
' ~ 
and order <lated June 27, Hl55, of the Calcutta 
High Court in Appeal from Original Decree No. 28 
1!)48. 
A. V. Viswanatlut Sustri· and B. P. Mohcshwari, 
for the appellant. 
B. Sen, P. K. Chalf£rjee and l'. K. Bose, for 
the re8ponden t. 
1962. April 17. The Judgment of the Court 
was delivered by 
. 
--· 
SHAH, J.--Messr~. Surajmull Nngarmull-who 
will hereinafter be referred to as the appellants-
were tenants of three warehouses and vacant land 
appurtenant there-topopularly known as the Sham-
nagar Jute Godown-sbelonging to Sri Hanuman 
Seva Trust. The warehouses were used for storage 
of jute belonging to the appellants. 
By an order 
dated August 17, 1943 and issued under Rule 75A 
of the Defence of India Rules, 1939, the warehouses 
were requisitioned and possession t.hereof W&l! taken 
on September 21, 1943. 
As the amount of compen-
sation payable to the owner of the warehouses 
could not be fixed by agreement an Arbitrator was 
appointed under s. 19( l)(b) of the Defence of Indi" 
Act, 1939. Before the Arbitrator, Sri Hanuman 
Seva TruHt claimed compensation as owners of the 
· • 
warehouses. The appellant claimed compensation ~ 
for loss of earnings, "damage to husinesa' and ooat 
r 
I
2 s.c.R. 
SUPREME COURT REPORTS 
165 
of removal of 18,0llO maunds of j11te and some iron 
implements, which the appellants claimed had. to be 
removed in consequence of tho order of requisition. 
The appellants estimated the 
compensation at 
Rs. one lakh. The Arbitrator by his order dated 
December 13, 1917 observed that the appellants had 
failed to prove any actual loss of business in conse· 
quence of the requisition, and rejected the claim of 
the appellants. 
Against t,he order passed by the· Arbitrator 
an appeal was preferred to the Hi;h Court of Judi-
cature at Calcutta. The appellants valued the claim 
at Rs. 1,50,000/-. 
At the hearing of the appeal, 
t.he State of West Bengal contended that the appeal 
was not maintainable in view

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