UNION OF INDIA Vs. MOMIN CONSTRUCTION COMPANY

JUDGEMENT

(1.) These appeals raise the same question of law and can be decided by a common judgment.

(2.) For the purpose of convenience, the brief facts that are set out relate to the first appeal, Civil Appeal No. 1316 of 1977. The relevant dates in the other appeals are similar.

(3.) The appellant and the respondents entered into a contract which contained an arbitration clause, namely, that all disputes or matters in difference between them arising out or connected with the contract during the progress of construction work therein set out or after its completion would be decided by arbitration. The final bill in respect of the construction work was prepared and the respondents gave a 'No claim Certificate' on 11th August, 1965, whereupon the final bill was passed. On 26th February, 1971, the respondents filed a petition under Section 20 of the Arbitration Act to take on the file of the City Civil Court, Ahmedabad the arbitration agreement aforementioned. The appellants contested the petition and urged that it was barred by limitation. The issue was answered against the appellant and the petition was allowed.