KULDIP SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) The disputes having arisen between the parties relating to "Zone Contract for Zone No. 4/HQ under AEN? 1/Lucknow for the period ending 30-6-1978 staff colony, in GRP Lines, Cash & Pay colony Multi storeyed quatters. Hyder canal, old and new sick line colonies, Railway Institute & colony opposite goods shed, Lucknow station building goods shed area and whole of station yard, under Agreement No. 48/WA/Z4/CB/77-78 dated 29-7-77". the matter was referred to the sole arbitration of Shri J.S. Mundrey, then working as Chief Engineer (Construction) Northern Railway, now working as Executive Director, Civil Engineering, Railway Board, New Delhi by the General Manager. Northern Railway, New Delhi under his letter No. 63-W/44/158-D dated 20-11-1985 The arbitrator after having considered the statement of facts, counter statement of facts, all other papers filed before him heard the parties, considered all arguments and evidences and gone through all material papers and documents placed before him announced and published the award dated 29th October, 1986 awarded a sum of Rs. 23,750 in full and final settlement of all claims, referred to arbitration in favour of the claimant i.e. Kuldeep Singh contractor. He also awarded simple interest @ 15 per cent per annum on the awarded amount.

(2.) The arbitrator filed the award dated 29th October, 1986 and the proceedings into this court and the same has been registered as suit No. 1591-A of 1987, i.e. the present suit. After the filing of the award in court notices were ordered to be. issued to the panics. Notice of the filing of the award was served on the claimant-contractor on 28th August, 1987 whereas the Union of India was served with the said notice on 15th September, 1987. No objections were filed on behalf of the claimant-contractor. However, objections (IA 981/87) were filed on behalf of the Union of India. The claimant-contractor has not chosen even to appear in the court. Hence he is proceeded ex-parte.

(3.) The Union of India was allowed to file affidavit by way of evidence in support of objections on 27th October, 1988. The Union of India has filed the affidavit of Shri Budh Prakash, Divisional Superintending Engineer (C) Northern Railway Lucknow Division. Lucknow who has stated that the award is bad in Jaw .is the arbitrator has not given the break up of the sum awarded against the each item of claim which he was required to do under the terms of reference dated 29th November, 1985. The arbitrator has awarded Rs. 20,000 against contractor's claim of items two or six including the arbitration expenses. It cannot be ascertained as to what amount has been awarded against each claim and which claim has been accepted or rejected. The affidavit further states that the award is beyond the jurisdiction of the arbitrator as he has stated in the award that payment, if any, made on the labourers through the agency of Labour Enforcement Officer (Central) Lucknow will be made by the UOI being the princip.le employer over and above the awarded amount. The said finding of the arbitrator is not within the scope of jurisdiction of the terms of reference based on the Delhi High Court judgment dated 10th July, 1985. The arbitration leaves jurisdiction from the terms of reference. 'The affidavit further states trat the UOI had also submitted to the arbitrator counter claims of Rs. 44,958.81 being financial loss due to non-completion of work by the contractor and getting the said work done from the other contractor. The arbitrator while giving the award has not considered the counter claims of the Union of India which is a mistake apparent on the face of the record and against the facts. It is further stated in the affidavit that the arbitrator has; travelled beyond his jurisdiction by allowing future interest and is. therefore, guilty of breach and neglect of duty and responsibility which has resulted in miscarriage of justice. Lastly it is prayed that the award may be set aside and/or remitted to the arbitrator for reconsideration.