U P JAL NIGAM Vs. SHANKAR CONSTRUCTION

JUDGEMENT

(1.) The present appeal is against the order dated 22.2.1993 passed by the 3rd Additional Civil Judge, Agra. It arises out of the proceedings under the Arbitration Act 1940. The respondents herein are the contractors in Department of U.P. Jal Nigam. On 6.8.1988, the parties entered into work contract. The said contract also contains, according to the parties, an arbitration clause. A dispute arose between the parties with regard to the payment due to the contractors/respondents herein. The respondents filed an application under Section 20 of the Arbitration Act for referring the matter to an arbitrator. The matter was contested by the appellants herein unsuccessfully. The contention of the appellants' that there is no arbitration clause between the parties was put to issue and was decided against them. The trial Court by its judgment and order dated 12.2.1992 accepted the application for referring the matter to an arbitrator and appointed Chief Engineer as per terms of the Arbitration Clause as Arbitrator. It was also provided that the said Arbitrator shall submit his award to the Court within two months. The said order was not challenged by the appellants and it has attained finality. By a subsequent order, Lalita Singh, retired Chief Engineer (East) was nominated as Arbitrator.

(2.) The Arbitrator entered into the reference and the appellants herein by their letter dated 29.4.1992 asked the respondents to supply some stamp paper wroth Rs. 7/- in favour of Arbitrator so that the Arbitrator may proceed with the matter. Thereafter, the Arbitrator entered into the reference and gave the award on 10.9.1992.

(3.) When the notice of the award delivered by the Arbitrator was served on the appellants, an objection was filed on 9.11.1992 under Sections 30 and 33 of the Arbitration Act on the ground that Lalita Singh who had retired in the year 1991 and was not Chief Engineer in Office could not be nominated as Arbitrator, full and proper opportunity of hearing was not given to them by the Arbitrator and the Arbitrator misconducted himself.