WESTERN COALFIELDS LTD Vs. HARICHAND RAI

JUDGEMENT

(1.) BY these two revision applications, the applicants challenge the order dt. 17-12-1979 and 29-7-1980 by which the trial Courts, acting under S.8 of the Indian Arbitration Act, appointed arbitrators by virtue of cl.9 which was an arbitration clause in two agreements between the applicants and the opponents in the two cases.

(2.) IN Civil Revision Application No.107 of 1980, the position was that the parties entered into an agreement on 4-6-1976 for transporting sand for Chanda Rayatwari Colliery which was owned by the applicants. The work commenced and was completed on 27-1-1977. The final bill was also paid to the opponent in that case and the bank guarantee for Rs. 50,000/- was also released. However, about one-and-a-half years after that was done, the opponent M/s.Harichand Rai sent a notice dt.16-9-1978 contending that there was a dispute and calling upon applicant No. 1 to appoint an arbitrator for settlement of the alleged dispute. A reply was sent by the applicants on 28-2-1979 contesting the notice. An application was thereafter made by the opponent for appointment of an arbitrator to the learned Judge, and by an order passed on 17-12-1979, Shri Kamal D. Kanal, an Engineer from Nagpur, was appointed as an Arbitrator and he was directed to file his award within four months from the date of the order.

(3.) THESE two orders are being challenged by the two revision applications on identical grounds. The arbitration cl. No. 9 in the two agreements runs as follows: