HYDERABAD STOCK EXCHANGE LTD Vs. KAVERI PROJECTS LTD

JUDGEMENT

(1.) This appeal is directed against the order dated 24.6.2002 passed in O.P. No.301 of 1999 by the learned III Addl. Chief Judge, City Civil Court, Hyderabad, dismissing the petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, seeking to set aside the Award dated 2,11.1998 passed by the second respondent herein.

(2.) The facts, in brief, which necessitates the disposal of this appeal are that the first respondent herein entered into contract with the appellant vide agreement dated 17.1.1995 for construction of left bank and covering of cut out for ground floor, trading hall and other RCC works in the existing structure and upper floors at Door No.6-3-654/A, Somajiguda, Hyderabad. Among other conditions mentioned therein, clause 4 of the agreement entitles the parties to refer the matter to the sole named arbitrator viz., the second respondent herein. As such, in view of the disputes that arose between the parties, the first respondent referred the matter to the second respondent - sole arbitrator, who after conducting enquiry passed an Award on 2.11.1998, allowing the claims.

(3.) Aggrieved by the said Award, the appellant herein filed the above O.P. under Section 34 of the Arbitration and Conciliation Act, 1996 (for brevity the Act) seeking to set aside the Award dated 2.11.1998, inter alia contending that since the first respondent had completed the work only on 30.11.1995 and in view of the Arbitration Clause in the agreement stipulating only one month from the date of completion of the work for reference to the named Arbitrator, the reference is categorically time barred inasmuch as, admittedly, the representation was made for arbitration only on 9.1.1996. It was further contended that the second respondent ought not to have travelled beyond the scope of reference and terms of the contract and passed the Award.