SREE RAJESH INDUSTRIES Vs. K K VERMA

JUDGEMENT

(1.) The Miscellaneous Appeal under Section 39 of the Arbitration Act, 1940 (for short 'the Act') and the revision under Section 115 of C.P.C., are between the same parties and arose out of the arbitration proceedings between them. Hence, they are disposed of through a common judgment.

(2.) The Appellant is an Electrical Contractor and undertakes the works of State Electricity Board and other establishments. It was entrusted with the contract of supply of material and erection of 132/25 KV Traction Sub-Stations at Kondapally, Bonakalu, Dornakal and Neekonda stations of South Central Railway, in the year 1983. The value of the contract was Rs. 56,99,932/-. The Appellant executed the substantial part of the contract. However, disputes arose between the Appellant and the Chief Project Manager, Railway Electrification, the 3rd Respondent. As provided for under the agreement, for the works, the matter was referred to Respondents 1 and 2 for arbitration. Accordingly, they entered appearance and took up the proceedings. The Appellant, on the one hand, and the 3rd Respondent, on the other hand, made claims against each other. Through an elaborate award, dated 27.12.1990, the Arbitrators held that the Appellant is entitled to be paid a sum of Rs. 12,63,044/-, whereas the 3rd Respondent is entitled to recover a sum of Rs. 8,93,102/-, under various heads. The result was that the Appellant was held to be entitled for a sum of Rs. 3,69,942/-.

(3.) The 3rd Respondent filed O.S. No. 44 of 1991, in the Court of III Additional Senior Civil Judge, Viayawada, under Sections 14 and 20 of the Arbitration Act, with a prayer to make the award as the Rule of the Court. The Appellant, on the other hand, filed O.P. No. 205 of 1991 in the same Court, under Sections 30 and 33 of the Act, with a prayer to set aside the award. Through a common judgment, dated 17.01.2000, the trial Court dismissed O.P. No. 205 of 1991 and decreed O.S. No. 44 of 1991. Hence the appeal and revision.