STATE OF KERALA Vs. JOSEPH VILANGADAN

JUDGEMENT

(1.) :- The petitioners in Arbitration O.P.150/85 before the 1st Addl. Sub Court, Ernakulam, are the appellants.

(2.) ESSENTIAL facts lie in a narrow compass. The contract, the State had entered into with the respondent-Contractor to do the work of 'widening and strengthening single lane section to two lanes from K. M. 438/0 to 444/0 road formation of C.D. Works', was terminated by the State on 24-3-1980 on the ground that the contractor failed to perform the contract. The contractor thereupon filed O.S.(Arb.) 226/80 before the Court below for filing the arbitration agreement and for the appointment of an arbitrator. Accepting the case of the contractor the Court appointed an arbitrator who passed an award and filed the same in Court. The Contractor thereafter filed O.P. 64/84 under Section 17 of the Arbitration Act to pass a decree in terms of the award. The State filed O.P.100/84 under Ss. 16, 30 and 33 of the Arbitration Act to set aside the award. Both these petitions were disposed of by a common judgment dated 24th September, 1985. O.P. 64/84 was dismissed and O.P. 100/84 was allowed and the award was remitted to the arbitrator 'to consider issues II, III, IV and VII and the counter-claims which are found to be illegal and contradicting in view of the finding in Issue No. I that the termination is not unlawful'. The arbitrator was given three months' time to resubmit the award.

(3.) IT can thus be seen that Issues Nos. II, III, IV and VII require to be investigated afresh in the light of the finding on Issue No. I namely, that the termination of the contract was lawful.