VINODBHAI MOHANBHAI VEKARIA Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Rule. Mr.Gori, learned AGP waives service of notice of rule on behalf of the State Government. With the consent of the parties, the matter is taken up for final hearing today.

(2.) The short question involved in this petition is that if civil suit is filed prior to the enactment of Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 (hereinafter referred to as "Act"), whether the Civil Court's jurisdiction is ousted or is required to be transferred to the Tribunal or whether the Civil Court has the jurisdiction to try such suits.

(3.) The short facts of the case are that the petitioner filed Special Civil Suit No.151/1986 in the Court of Civil Judge (S.D.), Gondal for the recovery of Rs.5,72,575.82 on the ground of recovery of the amount towards security deposit, non-payment of the work already undertaken, loss of profit etc., of the works contract entered into by the petitioner with the respondent State Government. In the said Civil Suit, Application Ex.24 was filed by the State Government on 28-10-1988 to stay the proceedings of the Civil Suit on the ground that there is a clause of arbitration and the matter can be referred to the arbitrator. The learned Civil Judge on 30-11-1989 passed the order below the said application Ex.24, whereby the application was dismissed and the request of the State Government to stay the proceedings of the Civil Suit in view of Section 34 of the Indian Arbitration Act was dismissed. A statement is made at the bar that the said order is not challenged before any higher forum and is operating as on today.