LAWS(SC)-1990-3-81

STATE OF ANDHRA PRADESH Vs. I. DEVENDER REDDY

Decided On March 02, 1990
STATE OF ANDHRA PRADESH Appellant
V/S
I. Devender Reddy Respondents

JUDGEMENT

(1.) Under Sec. 8(2) of the Arbitration Act, Subordinate Judge, Peddapalli at the instance of the respondent appointed an Arbitrator to give an award in respect of the dispute relating to the execution of a work contract. The appeal against the said order has been dismissed by the High Court in limine. The State has now appealed to this Court challenging the order appointing the Arbitrator.

(2.) Mr. Nambiar, learned counsel for the State has relied upon two Government notifications dated 24 Oct., 1983 and 1st June, 1987 in support of his contention that the dispute cannot be decided by the Arbitrator but must be determined by a civil court in a properly constituted suit. We have perused the terms of the notifications. The first notification dated 24 Oct., 1983 is not precise in terms as to the forum of adjudication of claims above Rs. 50,000.00 but the second notification dated 1st June, 1987 expressly provides that all claims above Rs. 50,000.00 shall be decided by the civil court of competent jurisdiction by way of a regular suit. If first notification was clear enough as to the jurisdiction of the civil court to decide all claims above Rs. 50,000.00 it was unnecessary to issue the second notification substituting the uncertainty in para 3 of the first notification. It is not in-dispute that the second notification is only prospective and apparently not applicable to the case on hand since the claim in question arises out of the contract dated 4th March, 1986.

(3.) We, therefore, see no reason to interfere with the order of the Subordinate Judge as affirmed by the High Court.