HEAVY ELECTRICALS INDIA Vs. PANNALAL DEVCHAND MALVIYA

JUDGEMENT

(1.) THIS order shall govern the disposal of Misc. (First) Appeal No. 209 of 1970, (Pannalal Malviya v. The Heavy Electricals Ltd. Bhopal) also. These appeals are directed against the same order (wrongly described as a judgment) dated 3-91970, passed by the Third Addl. District Judge, Bhopal in Civil Suit No. 1-A of 1970.

(2.) THE Heavy Electricals Ltd. , which is a Government undertaking, but which is a separate corporation having its separate legal entity, gave a contract for the work of filling certain area. Under the agreement the contractor was to be paid 3% above the rate of Rs. 00. 80 paise per cubic meter for morum or sand spreading, including dressing 50 meters lead, and 1. 5 meters free lift The extent of work done as also the rate at which the payment was to be made were points of dispute between the parties. When the contractor submitted the final bill, the Heavy Electricals deducted an amount of Rs. 17. 169. 52 paise.

(3.) THE contention of the Heavy Electricals is that the plaintiffs application under section 20 of the Arbitration Act was not maintainable and, therefore, the matter could not be settled through arbitration. We may observe that there is no substance in the said stand taken on behalf of the Heavy Electricals. The agreement in question, which is in a printed form, is an agreement of arbitration and under Clause 62, the dispute would certainly be referable to the arbitrator named in the clause. It may be relevant to reproduce Clause 62 of the agreement, which is as follows:-" clause 62:-- All disputes, between, the parties to the contract (other than those for which the decision of the C. E. (C) or any other officer of the Company is by the Contractor expressed to be final and conclusive or binding shall after written notice by either party to the contract to the other of them be referred to the sole arbitration of an Engineer Accounts officer to be appointed by the Chairman, General Manager. H. E. (I)Ltd. , Bhopal in his sole discretion, unless the parties otherwise agree, such reference shall not take place until after the completion, alleged completion or abandonment of the work or determination of contract. The venue of Arbitration shall be such place or places as may be fixed by the Arbitrator in his sole discretion. The award of the Arbitrator shall be final, conclusive and binding on both parties to the contract". Therefore. Clause 62 contemplates reference of all disputes to the named arbitrator except those questions, which have become final and binding by virtue of other clauses of the contract. In the present case we are concerned with Clause 54 of the agreement. It is unnecessary to reproduce other Sub-clauses, but the relevant portions only are as follows:-