M/S RELIABLE CONTRACTORS Vs. UNION OF INDIA

JUDGEMENT

(1.) This revision under section 115 of CPC is directed against the order dated 30.01.01. passed by 12th ADJ, Jabalpur in Ex. T.C. No. 3/98.

(2.) Facts in brief are, applicants offer for supply of potatoes, garlic and onions to ASC Jabalpur for the period of 01.04.75 to 31.03.96. On account of rise in the cost of onions and potatoes, the applicants made demand for escalation to meet the rise in procurement. This demand was not accepted by non -applicant, therefore could not affect supply resulting in dispute between the parties. Invoking the Arbitration Clause, the applicants called upon the Deputy Director Supply and Transport to nominate an arbitrator. Finally application under section 20(1) of Arbitration Act, 1940 was filed by the applicants. The 12th ADJ. Jabalpur vide order dated 04.03.97, referred the dispute to Lt. Col. L.S. Sundram. The arbitrator rendered the award on 07.07.97. This award was put to execution. The applicants contended that the proceedings under section 20 of the Arbitration Act, 1940 were initiated, therefore, award dated 07.07.97 without being made the rule of the court, could not be proceeded with in execution. This contention of the Applicants was rejected vide impugned order dated 30.01.01. passed by 12th ADJ. Jabalpur.

(3.) With reference to arbitration Clause, application under section 20 of the Arbitration Act, 1940 was filed on 05.12.95 before the commencement of the Act, Arbitration and Conciliation Act, 1996. However, order referring the dispute to Arbitrator was passed on 04.03.97. The Arbitrator on the basis of this order dated. 04.03.97 commenced proceedings of arbitration under the provisions of new Act of 1996 and has rendered award dated 07.07.97. Accordingly, the court below held that after passing of order dated 04.03.97, the lis under section 20 of the Arbitration Act since had been terminated finally, the Arbitrator proceeded with the hearing of matter under the provisions of new Act. The Award dated 07.07.97 was not assailed under section 34 of Arbitration and Conciliation Act, 1996, therefore, finality has been attached to the award. Section 85 of the new Act is as under : -