BSES LTD. Vs. FENNER INDIA LTD.

JUDGEMENT

(1.) THE above appeal is preferred against the order dated 22.03.2004 passed by the learned Principal District Judge, Madurai, dismissing Ar. O.P. No. 1/2003 filed under Section 9 of the Arbitration and Conciliation Act, 1996, hereinafter called 'the Act', directing the parties to maintain status quo for a period of one month from the date of the said order.

(2.) THE 1st respondent was awarded with the contract by Godavari Sugar Mills Limited for construction of a Captive Power Plant in their factory at Sameerwadi, Karnataka. The 1st respondent, in turn, awarded a part of that work to the appellant for the value of Rs. 70,00,000, Rs. 5,57,00,000 and Rs. 90,00,000, totalling a sum of Rs. 7,17,00,000 under three contracts namely :

(3.) IN the order dated 22.03.2004, the learned District Judge found that the dispute raised has to be decided by the arbitrator. This finding was given on the basis that the parties have come forward with the conflicting facts regarding the completion of work. The learned District Judge also found prima facie on the basis of Exs. P13, P14 and P15 that the advance amount has been adjusted in the bills. On that basis, it is found that even though the appellant is not entitled to an order of injunction, their right must be safeguarded till the matter is disposed of by the arbitrator. Since the learned District Judge felt that the dispute has to be dealt with and decided only by the arbitrator, the learned Judge dismissed the O.P., directing the parties to approach the arbitrator for appropriate remedy and taking into consideration the facts of the case, extended the interim order granted in IA No. 1427/2003 for a period of one month from the date of the said order.