NATIONAL DAIRY DEVELOPMENT BOARD Vs. SURAJ SINGH

JUDGEMENT

(1.) THIS is a revision under Section 115, CPC by the non-applicants against the order dated 11-5-2000 in Civil Suit No. 20-A of 1996 of the 5th Additional District Judge, Bhopal by which the application for appointment of arbitrator has been allowed and the non-applicants have been directed to appoint arbitrator for resolution of the dispute in terms of the arbitration agreement.

(2.) NON-APPLICANT National Dairy Development Board invited tenders for construction of chilling plant at Harda. The applicant submitted his tender. He was awarded contract. There is arbitration agreement in Clause 90 of the Contract. There arose dispute between the parties in respect of payment of some of the items claimed by the applicant. The non-applicant made payment of Rs. 18,397/- on 1-10-1990. Thereafter, on 23-11-1990 the non-applicant wrote a letter to the applicant informing him that a further payment of Rs. 26,145/- can be made if the applicant gives in writing that he would not make any further claim. According to the applicant the final bill was not prepared. The applicant wrote the letter dated 11-3-1996 to the non-applicant for appointment of an arbitrator as per arbitration clause in the contract for resolving the dispute. But the arbitrator was not appointed. The applicant submitted an application on 6-5-1996 before the 5th Additional District Judge, Bhopal for the appointment of arbitrator. This application was described to be "under Section 8 (2) of the Arbitration Act". By the impugned order this application has been allowed and the non-applicants have been directed to appoint an arbitrator as per arbitration agreement.

(3.) THE case of the non-applicant was that the applicant has been paid for the work done by him and by the letter dated 13-9-1990 he was informed that no further payment is to be made. Therefore, the applicant's application for appointment of arbitrator is barred by limitation.