GOVERNMENT OF ANDHRA PRADESH Vs. CH RAMLINGA REDDY

JUDGEMENT

(1.) This appeal by the Government of Andhra Pradesh represented by the Deputy Secretary, Finance and the Superintending Engineer, Irrigation Circle, Kurnool is preferred against the order of the learned First Additional Judge, City Civil Courts, Hyderabad in O.P.No. 85/90 dated 30th October, 1995, allowing the plea of the respondent No.1 Ch.Ramalinga Reddy, a Class-1 Contractor for removal of respondents 2, 3, and 4 herein (respondents 3 to 5 in the O.P) as Arbitrators and appoint another Arbitrator in their place to adjudicate the dispute between him and the Superintending Engineer, Irrigation Circle, Kurnool. By the impugned order, the learned Judge directed both parties to file a list of Arbitrators within six days for appointing one of them as sole Arbitrator.

(2.) Pursuant to the tenders called by the Superintending Engineer, Irrigation Circle, Anantapur in respect of formation of a new tank in the District one D.Seetharam Reddy's tender was accepted and an agreement was concluded with him by the Superintending Engineer for carrying out the work, the value of which was Rs. 19,72,559/-. After executing a part of the work, the said Seetharam Rcddy fell ill. So he requested the Superintending Engineer to entrust the balance of that work to Ch.Ramalinga Rcddy, the respondent No.l herein (petitioner in the O.P.)., by a letter dated 30th November, 1981, and accordingly, the work was transferred by the Superintending Engineer in the name of Ramalinga Reddy by proceedings dated 11-1-1982. A Tripartite Agreement was also entered into between the Superintending Engineer, Seetaram Reddy, the original contractor and Ramalinga Rcddy, the first respondent herein under which it was agreed that Ramalinga Reddy alone should execute the balance of the work and the amounts for the work carried out by him should be paid to him only. It was also mentioned in the Tripartite Agreement that the original contractor Seetharam Reddy has given up all his rights in respect of the contract works and Ramalinga Reddy is entitled to all the assets and liabilities in that regard. A Power of Attorney was said to have been executed by Seetaram Rcddy on 1-12-1981 and registered on 3-12-1981. Subsequently, as disputes arose, the matter was referred to a panel of Arbitrators named therein in consequence of a relevant arbitral clause in the agreement.

(3.) The panel of Arbitrators, after having entered upon the reference, issued notices to both parties. During the pendency of the Arbitration proceedings, a letter dated 9-11-1989 was received by Ramalinga Rcddy on 21-11-1989, the contents of which read :