STATE OF GOA Vs. HEERA CONSTRUCTIONS

JUDGEMENT

(1.) PURSUANT to the acceptance of the tender submitted by the respondents, the work order was issued by the petitioners on 21-3-1991 and the work was required to be completed on 29-5-1993. As certain disputes and differences arose between the parties, the Persona Designata by his order dated 13-2-1995 appointed Shri G. R. Karandikar as the sole arbitrator and the said arbitrator, after hearing the parties, gave his award on 30-9-1996. The petitioners filed their objections to the said award in the Court of the Civil Judge, Senior Division at Panaji, under sections 30 and 33 of the Indian Arbitration Act, 1940, hereinafter called "the old Act", while depositing in the said Court the amount of Rs. 19,07,620/-, which was awarded by the arbitrator. The respondents were allowed to withdraw the said amount by giving Bank guarantee. However, by order dated 2-5-1998, the Civil Judge, Senior Division, Panaji referring to section 85 of Indian Arbitration and Conciliation Act, hereinafter called as "the new Act" and relying upon the decision of this Court in (M/s. Reshma Constructions v. State of Goa), reported in 1998 (3) Bom. C. R. (P. B.)837 : 1998 (1) Goa Law Times 311, dismissed the objections on the ground that the Civil Court has no jurisdiction to entertain the objections to the award in view of the applicability of the provisions of law contained in the new Act to the proceedings of the case in hand. Hence this Revision application.

(2.) UPON hearing the learned Advocates and on perusal of the records, and considering the facts of the case, the arbitration clause in the agreement between the parties, and the various provisions contained in the new Act including those relating to repeal and saving of the old Act, the point for determination which arises in this petition is whether the proceedings in the case in hand after 25th January, 1996 are governed by the provisions of the old Act or the new Act.

(3.) THE arbitration clause in the agreement between the parties reads thus: subject as aforesaid, the provisions of Arbitration Act, 1940 or any statutory modification and enactment thereof and the Rules made thereunder and for the time being in force shall apply to the arbitration proceedings under this clause. "