UNION OF INDIA Vs. JAMIL AHMED

JUDGEMENT

(1.) A number of petitions under Section 20 of the Arbitration Act,1940 for appointment of Arbitrator and for reference of disputes were disposed of by judgment dated 6th November, 2000 by the learned single Judge. However while disposing of the petition it was held that since after filing of these petitions Arbitration Act, 1940 had been repealed and Arbitration and Conciliation Act, 1996 had been enacted and since the parties had agreed that any statutory modification to Arbitration Act, 1940 will apply to the arbitration proceedings, therefore Arbitration and Conciliation Act, 1996 shall apply. It was held that Section 16 of the Arbitration and Conciliation Act, 1996 will be applicable and the Arbitrator will have the power to decide on his own jurisdiction It was held that the question as to whether any dispute raised by the claimant would be subject- matter of Arbitration or not and `excepted matter' and whether the claimants shall be entitled to interest are also the matters to be decided by the Arbitrator.

(2.) Aggrieved by the impugned judgment dated 6th November, 2000, the above noted appeal has been filed contending inter alia that the learned single Judge had relied upon the judgments of the Division Bench of this Hon'ble Court in RFA(OS) Nos. 31/89 and 250/93 titled "Sarvesh Chopra vs. General Manager and Another" dated 28th July, 2000 regarding `excepted matters'. However, a Special Leave Petition was filed against the said judgments where the Supreme Court had directed that the arbitration proceedings could go on but learned Arbitrator will not proceed in respect of claims which are excepted matters. It is also contended by the appellant that the learned single Judge erred in holding that Arbitration and Conciliation Act, 1996 will apply and not the Arbitration Act, 1940.

(3.) The learned counsel for the appellant has relied on decisions of this Court in the cases of Delhi Development Authority Vs Bhai Sardar Singh & Sons, FAO(OS) 93 of 2002 decided on April 20th, 2004; M/s Minny Enterprises ` General Manager, I.T.D.C, (FAO(OS) No.348/2003) decided on July 28th, 2004 and Milk Food Limited Vs. GMC Ice Cream Pvt. Ltd., 2004 (7) Supreme Court Cases 288.