UNION OF INDIA Vs. V S RAVINDRA REDDY

JUDGEMENT

(1.) This revision is filed by the Union of India represented by the General Manager, South Eastern Railways, Calcutta, questioning the orders of the principal Subordinate Judge, Visakhapatnam dated 3-8-1992 passed in O.P. No. 462/87 appointing a Retired District Judge as Arbitrator revoking the authority of the named arbitrators under the provisions of Sections 5 & 12 of the Arbitration Act of 1940.

(2.) The first respondent is a Civil Engineering Contractor who entered into an agreement with the revision petitioner for laying Broad Guage railway line from Koraput to Raighada comprising various kinds of works. As disputes arose between the first respondent and the petitioner relating to some amounts claimed by the first respondent in connection with the works done by him, he filed O.S.No. 397/84 under Section 20 of the Arbitration Act before the Court for a direction to the petitioner to file the award into Court and for referring the disputes for arbitration as per the arbitration clause in the agreement that was executed between the two parties prior to the commencement of the contract works. The said suit was decreed and the same was confirmed by the High Court also. Thereupon the petitioner herein appointed two arbitrators, who are respondents 2 & 3 herein, for adjudicating the disputes and for filing the award. The second respondent herein was chosen by the first respondent out of the panel of four persons named by the petitioner, and the third respondent was chosen by the petitioner as the other arbitrator. Respondents 2 & 3, who were thus appointed as arbitrators, chose another person as umpire and entered reference by issuing notices to the parties for proceeding with the arbitration enquiry. Thereupon the first respondent filed O.P.No. 462/87 before the Principal Subordinate Judge, Visakhapatnam under Sections 5 & 12 of the Arbitration Act of 1940 requesting the Court to revoke the authority of respondents 2 & 3 herein as arbitrators and for appointment of an independent person as arbitrator to adjudicate the disputes. The petitioner herein, who was the first respondent in the O.P., contested the said petition contending that there are no valid reasons for revoking the authority of the named arbitrators and for appointing an independent arbitrator. On the basis of the evidence adduced before him, the learned Subordinate Judge allowed the petition by the impugned orders and revoked the authority of the named arbitrators and appointed a Retired District Judge as an independent arbitrator, Questioning such orders the present revision is filed by the petitioner, who is the General Manager, South Eastern Railways, representing the Union of India.

(3.) Heard both the Counsel.