KSEB Vs. WESTERN INDIA COTTONS LTD

JUDGEMENT

(1.) The Electricity Board is the appellant. There was an arbitration between the appellant and the respondent. The arbitrator passed an award. This was sought to be converted as a decree by the first respondent. In this proceedings the Electricity Board filed an objection alleging misconduct and lack of jurisdiction of the arbitrator and seeking to set it aside the award. Contentions from either side were considered and a decree was passed, in terms of award. It is under challenge in this appeal.

(2.) It is contended by the appellant that neither the arbitrator nor the Court below appreciated the contention of the appellant that the arbitrator did not have jurisdiction to entertain the claims in terms of Section 76 of the Electricity Supply Act, 1948 which has been duly referred to in Clause 26 of Ext.A-76(a) agreement. Section 76 of the Act enables arbitration, only if such claims are required to be referred to arbitration. None of the claims comes within the purview of Section 76. So the claims were not arbitrable at all. Having thus entertained the claims beyond the agreement, the arbitrator has acted beyond the agreement and thus misconducted, it is submitted. Several decisions have been cited to elucidate this contention.

(3.) On the other hand, it is contended by the respondent that this Court in the common order C.R.P. No. 1699/89 and O.P. No. 166/88 between the parties had come to a finding that the appellant/Electricity Board is barred from raising such contention. The Board cannot dispute the agreements under Exts.A-76 and A-76(a). Clause 26 of Ext.A-76(a) contained the arbitration clause. In the light of this arbitration clause, the claims raised were arbitrable and there was no jurisdictional error or consequent misconduct to invite interference under Section 33 of the Arbitration Act, 1940, it is submitted.