BUDHIRAJA ELECTRICALS Vs. RITES

JUDGEMENT

(1.) THE objections under Sections 30 and 33 of the Arbitration Act, 1940 by way of I.A. No.6198/1999 preferred by the petitioner M/S Budhiraja Electricals, on being served with notice of filing in this Court of the award dated 10th February, 1999 of Sri B.K. Makhija, General Manager of the respondent Rites, acting as the sole Arbitrator are for consideration. THE Arbitrator was appointed pursuant to the order dated 26th November, 1997 of this Court in a petition under Section 20 of the 1940 Act preferred by the petitioner and registered as Suit No.2312A/1995 of this Court. Accordingly, even though the Arbitrator entered upon reference after coming into force of the 1996 Act but the arbitration was one under the 1940 Act.

(2.) IT was one of the pleas of the respondent Rites in Suit No.2312A/1995 that the petitioner having prior thereto furnished a no claim certificate and accepted refund of the security deposit thereunder was disentitled from seeking arbitration. This Court in order dated 26th November, 1997 in Suit No.2312A/1995 left the said question also open for arbitration. The Arbitrator in the award filed in this Court has held that the petitioner was forced to give the no claim certificate and/or furnishing of the same did not prevent the petitioner from seeking arbitration of disputes raised earlier.

(3.) THE respondent Rites contested that the letter dated 2nd March, 1990 whereunder Claim No.2 of Rs.13,49,017/- for escalation was made, was a part of the contract. THE Arbitrator negated the said contention of the respondent Rites and held the letter dated 2nd March, 1990 to be a part of the contract.