GOVERNMENT OF INDIA Vs. N ALUMINIUM PHOTO INDUSTRIES

JUDGEMENT

(1.) THIS is an appeal by the Government of India and the Director General of Ordinance factories questioning an order passed by the lower Court appointing an Arbitrator.

(2.) THE respondent-Contractor filed a suit under Sec. 20 of the Arbitration Act for appointment of an Arbitrator by the Lower Court other than the one mentioned in Clause 21 of the agreemsnt on the ground that appointment of such a person, who was responsible for certain allegations against the Contractor, would violate the Principles of Natural Justice.

(3.) ON the other hand, it is contended by Sri A. Satyanarayana Rao, the learned counsel for the respondent that the legal notice (Ex. A-1) as well as the long correspondence (Ex. A-3 to A-44) between the respondent and the appellant including the letters written to the Prime Minister, the Defence Minister and others will disclose that the respondent alleged mala fides against the entire department from the very beginning and that therefore, this is a case where the departmental official cannot sit as an Arbitrator. In any event, he contended, that under Clause 21 the 'Arbitrator' was designated as an officer sanctioning the contract or his successor in office or any person nominated by him and that in the present case, it was the General Manager, had sanctioned the contract and therefore, the Genaral Manager should not himself sit as an Arbitrator. The order passed by. the lower Court is, therefore, just.