CHARUVIL KOSHY VARGHESE Vs. STATE OF GOA

JUDGEMENT

(1.) THE appellant was entrusted the work of Rural Water Supply Scheme to Village Deussua and surrounding areas in Salcete Taluka by the respondent. Certain disputes arose and the appellant filed his claim before the Executive Engineer, calling upon him to settle and pay the amount claimed. The claim was not settled and the appellant, by letter dated 4-11-85 called upon the Chief Engineer to appoint Arbitrator, but Arbitrator was not appointed. Accordingly, the appellant filed arbitration suit before the District Judge, South Goa, praying that the agreement entered into between the parties be filed and requested the Court to make reference of the disputed claim contained in letter dated 16-10-85 to the Arbitrator. The learned District Judge allowed the suit and directed the Chief Engineer, P. W. D. , Goa, to appoint an Arbitrator to settle the disputes existing between the parties. The Chief Engineer was required to appoint Arbitrator in terms of the Court Order. However, as it is clear from the Order of appointment of Arbitrator which is by the Chief Engineer and which is at page 117, the Chief Engineer also introduced the counter claims and counter charges of the Government in the order of reference which were not the subject matter of the dispute in the said arbitration suit. It is an admitted position that no counter claims had been put up by the respondent in the said arbitration suit before the learned District Judge. In such eventuality, there was no question of reference of any counter claim or counter charge sought to be claimed by the respondent. The order of appointment and reference was required to be strictly in accordance with the order passed by the learned District Judge in the Arbitration Suit vide judgment dated 31st July, 1990.

(2.) THE Arbitrator entertained the counter claims and granted the same. The appellant filed objections to the said award including the maintainability of the counter claims, but this objection was overruled by the Addl. District Judge, South Goa, Margao vide judgment dated 30th July, 1996. Besides this, the appellant had also raised certain objections and it is not necessary to make reference to the same since learned Advocate Shri C. Mascarenhas, appearing on behalf of the appellant stated that he does not wish to press the said objections and would restrict the petition only to the maintainability of the counter claims in this appeal. Learned Advocate for the appellant drew my attention to Clause 25 of the agreement which deals with settlement of disputes by Arbitrators. He also drew my attention to the following sub-clause of Clause 25 which reads as under :--

(3.) THE learned Government Advocate Shri Bharne urged before me that the Chief Engineer could have independently also referred the counter claims of the Department to the Arbitrator which was done in this case. It was also pointed out that the claim put forward by the Department was only in respect of recovery and cannot even be strictly called counter claim for the said purpose and the Department is entitled for adjustment of the said recoveries. However, it was not disputed by him that these recoveries are ultimately disputed by the appellant.