JAYBHARAT RUBBER INDUSTRIES Vs. G.I.D.C.

JUDGEMENT

(1.) The present First Appeal arises out of and is directed against judgment and order dated 12th November, 1998 passed by the City Civil Court, Court No.19, Ahmedabad passed in Civil Misc. Application No.246 of 1995 being an Application filed under Section 30 read with Section 31 read with Indian Arbitration Act, 1940 for setting aside the Arbitration Award.

(2.) The lower appellate court allowed the said Application and set aside the Arbitration Award dated 09th January, 1995, holding inter alia that Clause No.4 of the agreement between the parties under which the appellant herein had referred the dispute to the Arbitrator was not an arbitration Clause and further that the Arbitrator had no jurisdiction to enter into Reference and make Award.

(3.) The facts of the case are outlined for the purpose of having a comprehensive picture of the controversy. The appellant Jay Bharat Rubber Industries (JBRI), Partnership Firm, applied for plot/shed at Vatva Industrial Estate at respondent- Gujarat Industrial Development Corporation (GIDC). GIDC allotted Shed No.A1-1-407 (Phase II) admeasuring 3,141 Sq. Meters and allotment letter dated 19th June, 1981 was issued, followed by execution of sale agreement dated 14th November, 1981. Clause No.4 in the said agreement, as is the case of the appellant, provided for deciding the dispute between the parties and that the same was an arbitration Clause.