STATE OF WEST BENGAL Vs. AMRITLAL CHATTERJEE

JUDGEMENT

(1.) As a result of an agreement between the parties certain work orders were given to the respondent herein. It is alleged that the respondent completed the construction work on 3rd July, 1990. Subsequently, on 20th October, 1993, the respondent raised a demand on account of additional work that it carried out to the Executive Engineer. It appears that the demand was not accepted by the Executive Engineer and as a result thereof the respondent sought reference for adjudication of disputes by an arbitrator.

(2.) Consequently on 7th September, 1994, the Chief Engineer of Irrigation and Waterways Directorate appointed one Shri K. P. Choudhary, former Secretary of the said Directorate as an arbitrator and referred the disputes raised by the respondent to the arbitrator. Since for a considerable period of time the arbitrator did not enter upon the reference, the respondent filed an application under Ss. 5, 11 and 12 of the Arbitration Act, 1940 for removal of the arbitrator and appointment of a new arbitrator in his place before a learned single Judge exercising original jurisdiction before the Calcutta High Court. The learned single Judge by an order dated 22nd August, 1996 allowed the said application and appointed Shri Sibaji Mitra, Bar-at-Law as an arbitrator by replacing Shri K. P. Choudhary. It is against the said order of the High Court, the appellant is in appeal before us.

(3.) Shri Tapas Ray, learned senior counsel appearing for the appellant urged that the order passed by the learned single Judge of the High Court was illegal, inasmuch as it was without jurisdiction on account of the fact that the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the new Act") came into force on 25-1-1996 We do not find any merit in the contention.