SATYA NIRMATA Vs. UNION OF INDIA

JUDGEMENT

(1.) The Appellant had entered into a contract/agreement with the first Respondent for some supply work vide agreement No. 73/EE/PWD-22(DA)/86-87. In this regard, they entered into an agreement and executed various documents in favour of the first Respondent. The said agreement contained an arbitration clause whereby the disputes between the parties were to be settled through the arbitrator. After the completion of the work certain disputes were raised by the Petitioner on account of some claims which they found were not settled by the first Respondent. Consequently, the Appellant served a notice dated 07.12.1988 upon the Chief Engineer (Zone II), Public Works Department to refer the disputes raised by him to the Arbitrator.

(2.) Pursuant thereto, the matter was referred to the sole arbitrator, namely, Sh. N.H. Chandwani, Respondent No. 2. The said Respondent made and published his award on 30.10.1990 and informed the same to the Appellant by sending a copy of the said award. After the notice of filing of award was issued to the first Respondent, the said Respondent filed objections under Section 30-33 of the Arbitration Act against the aforesaid award.

(3.) The first Respondent filed objections stating that the Arbitrator has mis-conducted himself while passing the impugned award in unilateral declaration. It was alleged that it was vitiated and was without any application of judicial mind. It suffers from various lacunae and it was therefore prayed that the award of arbitrator be set aside.