BHARAT SANCHAR NIGAM LIMITED Vs. KHURANA & 1

JUDGEMENT

(1.) Appellant Bharat Sanchar Nigam Limited (hereinafter referred to as 'BSNL' for short) has preferred this appeal against the judgment and order dated 20.08.1998 passed by City Civil Court, Ahmedabad in CMA No.534 of 1996 with CMA No.35 of 1997 with CMA No.6 of 1997, whereby CMA No.6 of 1997 filed by the present appellant has been rejected, whereas CMA No.534 of 1996 and CMA No.35 of 1997, filed by the contractor as well as the arbitrator, are allowed.

(2.) Heard learned advocate Ms. P.J.Davawala for the appellant and learned advocate Mr. Paras K. Sukhwani for the respondent.

(3.) Learned advocate Ms. P.J.Davawala appearing for the appellant submitted that the contract of construction of telephone exchange building at Bapunagar, Ahmedabad, was awarded by the appellant department to one M/s. M.S.khurana, Engineers & Builders (hereinafter referred to as 'contractor'). The said contract was executed between the parties vide agreement No.20/TCD/89- 90. The contractor had completed the work of the construction of the building after the due date and in the meantime during the course of the execution of the contract work and after completion of the same certain disputes and difference arise between the parties. The contractor, therefore, invoked provisions of clause 25 of the agreement and pursuant to the same, one Mr. S.K.Ahuja, Chief Engineer (Arbitration), Department of Telecommunication, Ministry of Communications, New Delhi, was appointed as the sole arbitrator to adjudicate the disputes between the parties. The contractor filed his claim, whereas, the department filed counter claims before the sole arbitrator and thereafter the sole arbitrator, after considering the evidence produced on record, passed his award. The sole arbitrator, thereafter sent a copy of the original award with its record to the City Civil Court, Ahmedabad for making the award rule of the Court and for passing the decree accordingly. The appellant, in the meantime, filed CMA No.6 of 1997 and challenged the award made by the sole arbitrator. The contractor also filed CMA No.534 of 1996 for direction against the arbitrator to file the original award in the Court and also for making the award rule of the Court. All the aforesaid applications were heard together and by way of common judgment, the learned Judge, City Civil Court, Ahmedabad, by common judgment dated 20.08.1998 rejected CMA No.6 of 1997 filed by the present appellant and allowed the other two applications.