GOVERNMENT OF KERALA Vs. M KUNHA ABDULLA

JUDGEMENT

(1.) THIS appeal by the State is against the decision of the Court below declining to set aside the award of the arbitrator and passing a decree in terms thereof. The contractor had entered into an agreement with the Government on 14-11-1979 for the construction of a masonry drain at Iritty town. The probable amount of the contract was fixed at Rs. 1,86,356/-, the work was to be completed on or before 13-4-1980. According to the contractor he could not complete the work within the stipulated time for reasons beyond his control. The work was, however, completed on 20-11-1980.

(2.) DISPUTES arose between the parties relating to the amount payable to the contractor. According to the contractor he is entitled to extra payment for escalation of cost for the work done after 13-4-1980. The agreement between the parties contained a clause for arbitration of disputes between them by the Chief Engineer (arbitration). The dispute was accordingly referred to the named arbitrator who entered upon the reference and passed an award on 2-11-1981. It is a non-speaking award, the operative portion of which reads :

(3.) THE learned Senior Government Pleader appearing on behalf of the appellant has urged the same point before us. According to him on acceptance of payment of the amount due under the final bill, there is a final settlement of accounts between the parties and there was no dispute to be settled by arbitration. We see no merit in this contention. THE question whether there is an arbitrable dispute between the parties is also a matter for decision by the arbitrator and when he passed a non-speaking award, it should be held that the arbitrator has overruled the objection raised at the instance of the State that there is no arbitrable dispute. In Damodar Valley Corporation v. K.K. Kar, AIR 1974 SC 158 it is stated at page 160 :