GOOD VALUE ENGINEERS Vs. M M S NANDA

JUDGEMENT

(1.) The short question that seeks an answer is as to whether in the facts of the case in hand the provisions of the Arbitration Act, 1940 or the Arbitration and Conciliation Act, 1996 would apply.

(2.) This question arises on basis of the facts that on 22/11/1995, M/s.Good Value Engineers (for short "the applicant") submitted, by notice to the Engineer-in-Chief, Kashmir House, Rajaji Marg, New Delhi, seeking that in face of the disputes, arbitrator should be appointed. The arbitrator was appointed and Notice had been issued by the arbitrator in December 1996. The award has been pronounced on 4/11/1997. Needless to point that the Arbitration and Conciliation Act, 1996 came into force on 16/8/1996. Earlier to that/the President had promulgated the Arbitration and Conciliation Ordinance on 16/1/1996. With effect from 16/1/1996, the Arbitration Act, 1940 had been repealed.

(3.) It is on the strength of these facts that it had been urged in terms that since notice to appoint the arbitrator had been issued on 22/11/1995, therefore, the arbitral proceedings had started from that date onwards and consequently, the provisions of the Arbitration Act, 1940 would continue to apply. On the contrary, as is apparent from the nature of the pleas referred to above the submission advanced was that since the arbitrator was appointed after coming into force of the Arbitration and Conciliation Act, 1996, and even award had,been pronounced after the repeal of the Arbitration Act, 1940 and coming into force of the Arbitration and Conciliation Act, 1996. Therefore, the present proceedings necessarily can not be governed by the Arbitration Act, 1940.