STATE OF KERALA Vs. MYTHIRI CONSTRUCTIONS

JUDGEMENT

(1.) This is an appeal by State of Kerala, represented by the Secretary to Government, Water & Power Department and the Superintending Engineer, Irrigation Central Circle, Trichur, challenging the decree in O.P. (Arb.) No. 60 of 1986 of the Sub Court, Irinjalakuda. Respondent herein was the contractor for the work of Chimoni Dam Project - Construction of Masonry Dam Block No. 15 upto 73 M and Block Nos. 16 & 17 upto 81 MSL. The agreement in question is dated 24-1-1979.

(2.) When disputes arose, respondent herein filed O.S. 226/81 before the Subordinate Judge's Court, Irinjalakuda under S.20 of the Arbitration Act, hereinafter referred to as 'the Act', for filing the agreement and also to refer the dispute to an arbitrator appointed by court. This suit was contested by the appellants. In their written statement it was contended that Clause.3 of the main agreement and Clause.24 of the notice inviting tenders, which are the relevant arbitration clauses have been specifically deleted from the agreement and there is no arbitration provision for the concerned contract. The court relying on the decision reported in 1983 KLT 583 (State of Kerala v. Joseph) held that the contentions raised by the appellants herein are untenable and the agreement also provides for arbitration if disputes have to be settled between the contracting parties. Accordingly, the court appointed Shri P.V. Joseph (Retired Chief Engineer) as the sole arbitrator.

(3.) Respondent raised several claims numbering 26. All the claims were seriously disputed before the arbitrator by the Department. A non speaking award was passed by the arbitrator. The arbitrator allowed certain claims and rejected certain other claims. He allowed claim Nos. 1,4,7,11,13,14,21,23,24 and 25. The award was filed before the court. Appellants objected the award and also prayed for setting aside the award. The court below negatived the contentions raised by the appellants and passed a judgment and decree in terms of the award. Appellants are aggrieved. They appeal.