Arbitration

amarpal (Querist) 12 August 2012 This query is : Resolved
contract with PSU to provide security cover to the stores.Stores received completely on paper but deficient on ground by the storekeeper.
Later FIR lodged against guards for theft.
Arbitration clause invoked
Advice on this case & any previous judgements on such cases

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R.K Nanda (Expert) 12 August 2012
State full facts.

amarpal (Querist) 13 August 2012
stores were taken over every morning/evening by storekeeper/guards.deficient stores being received/despatched to the extent possible by the laymen guards at the gate have been reported.2cable drums&39 axles reported one morning by storekeeper as missing.this requires a crane to lift such stores& this activity would have been noticed by PSU guards in the next door PSU workshop.The storekeeper over a period of time recived deficient stores on ground &has passed the blame on the guards

Guest (Expert) 13 August 2012
Dear Amar Pal,

The question arises, how the stores were accepted on paper without physical counting on the ground of the store of the PSU?

You can well realise that security cover is not meant for stores merely on paper, but for physical stores on ground. If your security guard was negligent on that count, may there be the dishonest move on the part of the officers or the store keeper of the PSU, but blame would rest on the security services.

You may therefore need to consult an expert by hiring his services by not only giving full background of the case, reconcile the stores movement inside and outside the stores premises along with the stores related documents with particular reference to your agreement for security services well before facing arbitration.

JANAK RAJ VATSA (Expert) 15 August 2012
generally when the stores come with the invoice, a joint physical verification is done by the security as well as the department to whom the stores belong and any discrepancy is reported to the consignor immediatelly. apprentally there has been either a collusion of minds between the store keeper and the security or the store keeper and the consignor which can only be revealed in a inquiry

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