BHAGAT RAM Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a petition under section 20 of the Arbitration Act alleging that dispute has arisen between the parties to the agreement and the matters in dispute may be referred to arbitration in accordance withthe terms of arbitration agreement as arrived at between the parties. The respondent No. 1 had given a work contract to the petitioner for the constiuction of Government Higher Secondary School, Ashok Vihar (Phase-I)- (Phase-II) vide agreement No. 9/EE/1978-79. It is alleged by the petitioner that disputes have arisen between the parties as regards payment of the bills of the work as executed by the petitioner in accordance with the agreement between the parties. It is also alleged that respondents No. 1 have wrongly rescinded the contract also.

(2.) The respondent No. 1 in their reply to petition stated that the petitioner had not completed the work and no final bill was submitted by him and till the final bill was submitted by the contractor, he was not entitled to claim any amount from respondent No. 1 and as such the petition was premature. On the pleadings of the parties, the following issues were framed: "(1) Whether the application is premature as alleged by the defendants/respondents in para 5 of the written-statement ? (2) Whether the matters in dispute as stated in para 10 of the petition are liable to be referred to arbitration ? (3) Relief."

(3.) Findings: "Issue No. 1: The only objection of the respondent No. 1 is that as per contract entered into between the parties, the petitioner was required to submit the final bill after the completion of the work by him and that the work was not completed by him and therefore, the petition was not maintainable and was premature. The petitioner has alleged that he submitted running bills of (***) Engineer (11), Public Witness .D. M.S.0. Building, I.P. Estate, New Delhi is accordingly directed to appoint an arbitrator in accordance to clause 25 of the agreement within two months from today. The arbitrator shall then enter into reference in accordance with the arbitration agreement as entitled into between the parties. The parties are allowed to bear their owe costs of this petition."