INDIAN INSTITUTE OF SCIENCE Vs. GEMINI CONSTRUCTION COMPANY

JUDGEMENT

(1.) THIS appeal arises out of a judgment rendered in a suit under Section 20 of the Arbitration Act, 1940 (hereinafter referred to as 'the Act' for brevity ). The appeal is by the defendant in the suit.

(2.) FOR the sake of convenience, the parties would be referred to by their rank in the suit.

(3.) THE facts of the case are as follows. The defendant had invited tenders in respect of certain civil construction works. The plaintiff was the successful tenderer and was awarded the contract in terms of an agreement dated 17-11-1986. The works were duly completed in May 1988. A final bill was prepared and furnished to the respondent on 2-3-1989. The plaintiff found major discrepancies in the bill and in this regard wrote to the defendant by letters, dated 1-5-1989 and 18-5-1989 calling upon it to re-examine the same and make payment. There was no response and it is in this circumstance, legal notice was issued and was followed up with a suit on the ground that the agreement between the parties provided for arbitration and since the defendant was reluctant for reference to arbitration, appropriate directions be issued under Section 20 of the Act. The dpfendant contested the suit and disputed the claim of the plaintiff primarily contending that there was no arbitration clause in the agreement, which would warrant reference to the arbitration. The Trial court, on a consideration of the pleadings and the documents placed on record, decreed the suit and directed the defendant to file the original agreement in order to enable it to refer the disputes to the named entity for resolution of disputes. It is this which is challenged in this appeal.