CONTINENTAL CONSTRUCTION LIMITED Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) These two appeals involving common questions of law and fact were taken up for hearing together and are being disposed of by this common judgment. Facts :

(2.) The parties hereto entered into a contract dated 20th August, 1964 for the purpose of construction of Obra dam, Power house, structures and appurtenant works. Disputes and differences having arisen between the parties as regard supply of extra quantity of earth and rock, the matter was referred to an arbitrator.

(3.) As far back as on 23.8.1972, the appellant herein invoked the arbitration agreement contained in Clause 17 of the contract in connection with earthfill and rockfill which was recorded from 53rd running bill upto the 88th running bill. One Shri J. S. Pujji was appointed as an arbitrator by the appellant. As the respondent did not appoint any arbitrator the appellant requested the said arbitrator to proceed in the matter as a sole arbitrator whereupon he entered into a reference. The respondent herein filed application before the Court of district Judge purported to be in terms of Sections 33 and 9 of the Arbitration Act, 1940 which was allowed. Being aggrieved by and dissatisfied with the judgment of the District judge, the appellant filed appeal before the high Court of Allahabad. The High Court by an order dated 17.4.1980 directed that both the contractor and the State Government shall nominate their respective arbitrators for resolving the disputes with regard to the claim for extra charges for earth and rock work made by the contractor for the period subsequent to 28.12.1967 and 15.6.1968 respectively. The parties thereafter filed their respective statements of claim, statements of defence and replications before the arbitrators. However, no award could be made by the learned arbitrator within the statutory period as the disputes and differences were referred to the Umpire in accordance with the arbitration agreement.