LAWS(KER)-1985-3-10

UNION OF INDIA Vs. P M PAUL

Decided On March 29, 1985
UNION OF INDIA Appellant
V/S
P.M.PAUL Respondents

JUDGEMENT

(1.) THE first respondent had entered into a works contract with the petitioner, represented by the Chief Engineer, Cochin Zone of the Military Engineering Service on 7-4-1979. Clause 70 of the Contract provided for Arbitration, and was in the following terms :

(2.) DIFFERENCES arose between the parties relating to the working of the contract. The first respondent-Contractor by his letter dated 13-9-1980 called upon the Engineer in Chief, Military Engineering Services, New Delhi, who was the designated appointing authority, to appoint an Engineer Officer as sole arbitrator, to adjudicate upon the dispute between the parties. No action appears to have taken on that letter. But the differences continued. Shri K.C.S.Rao, Additional Chief Engineer who was the Officiating Chief Engineer, South West Zone, Cochin, by letter dated 12-12-1981, terminated the agreement, allegedly in exercise of the powers vested in him under condition 54 of the General Conditions of the Contract. In letter dated 4-10-1982, the first respondent again called upon the Engineer-in-Chief to appoint an Engineer Officer as sole arbitrator to settle the dispute arising out of the non-settlement of his claims. This was reiterated in letter dated 28-1-1983. Ultimately, in letter dated 9-6-1983, the Engineer-in-chief of the first respondent appointed Shri K.C.S. Rao, Chief Engineer, Pune Zone, as sole arbitrator for adjudication of the disputes. Shri K.C.S. Rao entered upon the reference by requiring the parties to submit their statements in his communication dated 4-7-1983. It is admitted that in that letter, Shri K.C.S. Rao referred to the fact that he was the person who terminated the contract by letter dated 12-12-1981 while officiating as Chief Engineer, South-West Zone.

(3.) THE reliefs sought in Ext. P1 filed under Secs.5 and 12 of the Arbitration Act were :