MAHESHWAR VISHAMBHAR SAHAI Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) THIS petition by accused Maheshwar Sahai under section 397/401 of the Code of Criminal Procedure is directed against order dated 18-8-1979 passed by the Special Judge, Jabalpur in Special Case No. 5 of 1978 whereby certain preliminary objections taken by him against his prosecution under section 161 of the Indian Penal Code and section 5 (2) read with section 5 (1) (d) of the Prevention of Corruption Act, 1947 were rejected by the Special Judge. The petition is also under section 482 of the code of Criminal Procedure and it is prayed that the entire proceedings relating to his prosecution under the abovesaid provisions be quashed.

(2.) THE relevant facts, briefly stated, are these : In pursuance of an agreement dated 3-3-1973 executed between him and the Central Government one Rewachand had obtained a lease of a shop forming part of ordnance Factory Khamaria Estate in Jabalpur. The agreement contained the arbitration clause to the following effect:

(3.) IT is not in controversy that there did arise a dispute between the lessor and the lessee i. e. the Central Government and Rewachand in respect of certain matters covered by the abovesaid arbitration clause under the agreement. It is also not in controversy that in the circumstance the director General of Ordnance Factories acting in exercise of his right under the arbitration clause nominated accused Maheshwar Sahai who was at the material time working under him as Assistant. Director of Ordnance factories to act as the sole arbitrator in the matter and to resolve the dispute.