UNION OF INDIA Vs. D P WADIA

JUDGEMENT

(1.) These two appeals, preferred by the Union of India, Original Defendants, are directed against the Judgments and Orders dated 31st December, 1974, passed by the Civil Judge, Sr. Dn., Nasik, in Special Civil Suit Nos.222 and 223 of 1974. By the said judgments and orders the learned trial Judge was pleased to repel the challenges made by the original Defendants as to the invalidity of the awards of the arbitrator B.S. Sekhon, in respect of the disputes and differences between the Union of India and the Respondents, viz. M/s. D.P. Wadia and Sons, being the Plaintiffs in the said suits.

(2.) As a common question of law arises in both the appeals, they are heard together and disposed of by this common judgment.

(3.) The facts in Special Civil Suit No.222 of 1974, may be summarised as follows:- The Plaintiffs M/s. D.P. Wadia and Sons (hereinafter referred to as "the Contractors"), entered into a contract with the Union of India for the construction of certain buildings or quarters for the Government of India Printing Press at Nasik Road in or about 1956. The said construction was completed but in regard to the claims of the contractors against the Union of India and the counter claims of the Union of India, disputes and differences arose by and between the parties. It appears that in the correspondence antecedent to making of the reference, the Contractors claimed from the Union of India amounts which were payable to them under the said works contract together with interest thereon. The Union of India also in their turn counter-claimed certain amounts from the Contractors together with interest thereon. Having regard to the provisions of Cl.25 of the said works contract, which was the arbitration clause therein, the parties referred their disputes and differences to the said arbitrator. In fact, the said arbitrator was appointed by the Chief Engineer (SWZ), C.P.W.D., Bombay, by his letter dated 6th September, 1972, as arbitrator to decide and make award regarding disputes between the parties, "which disputes fall within the purview of Clause 25 of the agreement".