GORA LAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The appellant and the respondent herein entered into a written contract on 4-1-1982 whereby and whereunder certain work contracts were awarded to the appellant herein. The said contract stipulated that in the case of any dispute arising out of the contract the dispute would be referred to an arbitrator. It is alleged that during the period of contract, the respondent took additional work from the appellant. It is not disputed that the appellant completed the allotted work. However, certain disputes arose as regards the final payment for the work undertaken by the appellant. It is alleged that the appellant accepted the final bill under protest.

(2.) Subsequently, the appellant moved an application before the High Court under Section 20 of the Arbitration Act, 1940 (hereinafter referred to as "the Act") seeking reference of dispute to an arbitrator. The respondent contested this application. However, a learned single Judge of the High Court referred the matter to the arbitrator and on 5-2-1990, one Col. M. P. Sikka was appointed as sole Arbitrator who entered upon reference and invited claims and counter-claims of the parties by issuing notices to them. The parties put up their claims before the Arbitrator and subsequently the Arbitrator gave his award on 3-11-1990. Thereafter, the award was filed in the Court for being made rule of the Court. The respondent filed an objection petition under Section 30 and 33 of the Act. However, the learned single Judge of the High Court by an order dated 12-2-1998, with certain modification, directed that the award be made rule of the Court.

(3.) Aggrieved, the respondent filed a letters patent appeal before a Division Bench of the High Court. The appellant also filed a counter cross objection in the said appeal. The division Bench of the High Court allowed the letters patent appeal preferred by the respondent. The division Bench set aside the award and directed the respondent to appoint a new Arbitrator to enter upon the reference and make a speaking award. It is against the said judgment of the High Court, the appellant is in appeal before us by way of special leave.