STATE OF WEST BENGAL Vs. NATIONAL BUILDERS

JUDGEMENT

(1.) The two questions of law that arise for consideration in this appeal are if the refusal of an arbitrator to resign while not accepting the joint request of the parties to extend time for arbitration and leave it to them to decide their future course of action amounts to refusal to act by the arbitrator within the meaning of S. 8(l)(b) of the Arbitration Act (in brief 'the Act') and if it be so whether the power to appoint next arbitrator vests in the Court or it has once again to be in accordance with the procedure provided in the Agreement.

(2.) Dispute about settlement of claim in respect of construction of 250 bed hospital at Basudevpura having arisen between the respondent (contractor) and the appellant (Public Works Department of the State of West Bengal) the Chief Engineer nominated a Superintending Engineer as arbitrator in accordance with clause 25 of the agreement, relevant part of which runs as under :-

(3.) To decide if the court was justified in assuming jurisdiction to appoint another arbitrator as the arbitrator appointed by the Chief Engineer under clause 25 refused to act it is necessary to examine scope of Section 8(1)(b) of the Arbitration Act which reads as under :-