MAHARASHTRA KRISHNA VALLY DEVELOPMENT CORPORATION Vs. S.D. SHINDE & COMPANY ENGINEERS & CONTRACTORS AND ORS.

JUDGEMENT

(1.) THE appeal and revision are filed to challenge the judgment and order of learned Civil Judge, Senior Division, Ahmednagar in Arbitration Application No. 1/1997 and Regular Civil Suit No. 5/1997. Both the proceedings are decided at the same time by the learned Civil Judge, Senior Division. In the suit, decision is given, by which decree is given on the basis of award of Arbitral Tribunal. The application filed by employer, present appellant for setting aside the award is dismissed. Both the sides are heard. It appears that some of the partners of the contractor got separated and so, different advocates appeared for the partners in the present proceedings and all of them were allowed to argue the matter. However, they argued in support of the decision of the Civil Court and in support of the award delivered by so called arbitrator.

(2.) KRISHNA Vally Development Corporation is a State Corporation and it had given the work of construction of canal to respondent M/s. S.D. Shinde and Company. The value of the work was Rs. 55.77 lakh. The time of the work was fixed as 18 months and penalty was stipulated in the contract if delay was caused in respect of completion of work. On 15.1.1994 the contractor requested to withdraw the work on the basis of terms and conditions of the contract and the work was actually withdrawn. Final bill was prepared in the month of March 1995 and the amount under the final bill was paid to the contractor which was accepted under protest.

(3.) A proceeding was filed in the year 1996 under section 33 of Arbitration Act, 1940 (hereinafter referred to as 'the Act' for short) in the Court by the Corporation (1/1996). This application was dismissed by holding that the application under section 33 of the Act was not tenable. Reasons were given that the Corporation had appeared before the arbitrator and it can be said that it had submitted to the jurisdiction of the arbitrator. The submissions made by the learned counsel for the contractor were accepted that all the objections can be taken after the award is made and as arbitration proceeding was already started, it needs to be concluded.