GOVERNMENT OF KERALA Vs. LUIZ PAUL

JUDGEMENT

(1.) The appeal is at the instance of State of Kerala challenging the judgment of the Additional Sub Judge in O. S. No. 660/83. The matter arises under the Arbitration Act. The appellants were defendants. Suit was filed by the respondent under S.5, 8, 11 and 20 of the Act for making an order of reference of all disputes that have arisen between the parties in respect of the contract relating to the work of P. V.I.P. constructing, Kanjiramattom Distributory from ch. 1000 Mts. to 1200 Mts. including C.D. work. Before the court below, the appellants contended that the clauses relating to arbitration have been deleted in the tender notice itself and consequently, there was no arbitration clause in the agreement executed by the parties. Under these circumstances, the plaintiff respondent cannot seek a reference for arbitration.

(2.) The contention raised by the respondent that Madras Detailed Standard Specification was made applicable to the contract as per the agreement and hence all the provisions of Madras Detailed Standard Specification are to be applied in the case including the clause relating to the arbitration was not accepted by the court below. The court below found that the Madras Detailed Standard Specification had been made applicable only excluding the Clause.73 and other clauses relating to arbitration and therefore on the basis of the Madras Detailed Standard Specification, no contention can be put forward by the plaintiff seeking a reference to arbitration. The court below at the same time took the view that since Kerala P.W.D. Specifications are made applicable to the agreement, the plaintiff is entitled to seek a reference for arbitration in view of Clause.14, which reads as follows:

(3.) It is contended before us by the learned Government Pleader that the principles laid down by the Supreme Court in Sasidharan v. K.S.F.D.C. 1994 (2) KLT 1065 will be applicable in the present case also. Since the parties have agreed to exclude the arbitration clause in the main agreement itself, it cannot be contended that Clause.14 of the P.W.D. Specifications can be resorted to by the plaintiff to seek a reference for arbitration.