GOVERNMENT OF KARNATAKA Vs. SHETTY

JUDGEMENT

(1.) THIS appeal arises out of a Judgment and Decree passed by the Civil Judge, Yadgir in a. C. No. 2/1991 dated 11-12-1992 whereby the award passed by the sole arbitrator dated 24-1-1991 was made rule of the Court.

(2.) BRIEF facts of the case are as follows: the Government of Karnataka represented by the Executive Engineer I. D. , U. K. P. NLBC division No. 4, Kembhavi, Shorapur Taluk, Gulbarga District (hereinafter referred to as department) invited tenders for construction of Shahapur branch canal (balance work) in Upper krishna Project. M/s. Shetty Construction Company Private Limited, No. 13, Adarsha Nagar, hubli (hereinafter referred to as the 'claimant') emerged as a successful bidder and the claimant was allowed for execution of the work in terms of the agreement dated 14-2-1985. Since certain disputes and differences arose between the parties, the matter was referred to the adjudication of the sole arbitrator appointed as per the provisions contained in Clause 52 of the agreement.

(3.) SRI S. Puttappa, Superintending Engineer was appointed as the sole arbitrator. Pursuant to entering upon the reference by the arbitrator as per the notice dated 4-11-1989, the claimant filed its statement of claims before the arbitrator letter dated 20-11-1989 and the department filed the counter statement dated 24-1-1990. The arbitrator passed an award and published the same on 24-1-1991 and gave notice of the award to the parties. The claimant by its letter dated 16-1-1991 requested the arbitrator to file the said award into the Court. In pursuance of the same, the arbitrator submitted the award along with the connected records and documents to the Court. The arbitrator requested the Court to receive the award along with connected papers and issue Court notices to the respondents under Section 14 (2) of the Arbitration Act, 1940 and thereafter pass the orders which the Court would deem fit in the circumstances of the case. After registering the petition, the Court issued notices to the claimant as also to the department. The department has filed a petition under Section 30 of the Arbitration Act disputing the award of the arbitrator. The Civil Court on consideration of the contentions of the parties has passed the aforementioned judgment and decree. The department has filed this appeal challenging the said judgment and decree.