UNION OF INDIA Vs. ADDL DISTRICT JUDGE

JUDGEMENT

(1.) Heard learned counsel for the petitioners and Shri Vikrant Rana appearing for the contesting respondents.

(2.) The facts of the case in brief are that a contract was entered into between the Union of India and the respondent no.3 (M/s P.A.B.(India) Private Ltd., Partapur (hereinafter referred to as the 'Firm") on 22.02.1990 for construction of Air Conditioning Accommodation for data entry system at Ordinance Factory, Muradnagar. Subsequently, the time for completion of work was extended till 30.09.1991. Thereafter, certain disputes arose between the parties and as per clause 70 of the agreement, the matter was referred to sole Arbitrator. The Chief Engineer Bareilly Zone, Bareilly appointed Shri Ashok Kumar, Additional Chief Engineer (Planning), CEBZ Bareilly as Arbitrator by letter dated 15.12.1992. The Arbitrator gave its award on 21.01.1994 awarding certain amount in favour of the Firm. The Firm also filed an application under Section 14 of the Arbitration Act for making the award, Rule of the Court. The petitioners filed objection under Section 30 of the Arbitration Act before the Court below. By order dated 26.10.1996, the IVth Additional Civil Judge (Senior Division), Meerut rejected the objections of the petitioners and allowed the case of the Firm. This order dated 26.10.1996 was further challenged by the Union of India before the IVth Additional District Judge, Meerut by filing Misc. Appeal No.414 of 1996. On 18.11.1997, the appeal was allowed and the order dated 26.10.1996 passed by the Civil Judge (Senior Division) Meerut making the award, Rule of the Court was set aside and the matter was remanded back to the sole Arbitrator, Shri Ashok Kumar, Additional Chief Engineer for decision afresh. Certain findings were recorded by the Lower Appellate Court to the effect that the Arbitrator has not accepted the claim of the Firm, insofar as, claim nos.2, 3, 4, 6, 7 and 9 are concerned but while deciding item no.8 interest was awarded, which was a gross illegality and therefore, the same could not have been awarded. The Appellate Court remanded back the matter by judgment and order dated 18.11.1997 to Shri Ashok Kumar, Additional Chief Engineer and it is not in dispute that Shri Ashok Kumar had retired on 31st August, 1995 i.e. much prior to the date of decision of the Appellate Court given on 18.11.1997. This judgment was not challenged by Union of India before any higher Court and thus attained finality.

(3.) Shri Ashok Kumar proceeded with the arbitration proceedings and no objection was taken by the Union of India before him that after retirement he was no longer competent to proceed with the arbitration proceedings. Ultimately, a fresh award was passed on 15.06.1998 (which may be referred to as the "last award"). The Firm filed an application to make the (last) award, Rule of the Court. Against the last award, an objection was also filed by the Union of India under Section 30 of the Arbitration Act before the concerned Court. By judgement and order dated 15.09.1999, the Vth Additional Civil Judge (Senior Division), Meerut rejected the objection of the petitioners and directed that the Award dated 15.06.1998 be made, Rule of the Court. Against the aforesaid judgment of the Additional Civil Judge dated 15.09.1999, two miscellaneous appeals came to be filed by the Union of India being Misc. Appeal No.54 of 1999 and Misc. Appeal No.80 of 2000. Both the appeals were dismissed by the Lower Appellate Court on 31.03.2003.