UNION OF INDIA Vs. J N CONSTRUCTIONS

JUDGEMENT

(1.) The respondent was awarded a work contract by the appellant for construction of an office building at Chandigarh. The work was to be carried out in accordance with terms and conditions set out in an agreement executed between the parties. The work could not be completed within the stipulated time schedule and there was some delay in this respect. The work was eventually completed on 31st March, 1995. Disputes arose between the parties which necessitated invocation of arbitration clause by the respondent seeking adjudication of the disputes/claims raised by it, by a reference to arbitration. Failure on the part of the concerned department of the appellant to refer the disputes for arbitration, made the respondent to approach this Court by filing a petition under Section 20 of the Arbitration Act 1940 for appointment of an arbitrator and reference of disputes, as raised by it, to such arbitrator for adjudication thereon. It appears that barring Claim No.13.13 (h) all other claims raised by the respondent were referred to arbitration. The controversy is limited to Claim No.13.13 (h) which was referred to arbitration by an order dated 22.11.2001 of the learned Single Judge, the legality whereof is being impugned by way of appeal on hand.

(2.) Claim No.13.13 (h), reads in the following terms:- CLAIM NO. 13.13 (h):

(3.) The impugned order is being assailed on the ground that as the claim set out in 13.13 (h) falls in the category of 'excepted matters' as contemplated under Clause 25 of the agreement, it is beyond the purview of the arbitration clause and the same was thus not referable to arbitration. The plea of the respondent on the other hand is that the claim in question does not answer the requirement of being an 'excepted matter' as provided in the arbitration clause and that the learned Single Judge was justified in not treating it so and ordering a reference to arbitration in relation thereto.