STATE OF MADHYA PRADESH Vs. VIJAY RAJ KANKARIYA

JUDGEMENT

(1.) APPELLANT State of M. P. has preferred this appeal under section 39 of the Arbitration Act aggrieved by the judgment and decree, passed by the district Judge, Balaghat, dated 6-4-1984. Claimant/respondent has also filed cross-objection.

(2.) THE Executive Engineer of Bagh Canal Division entered into a contract with respondent/contractor by contract No. 35/b-L year 1972-73, for earth and stone work, after accepting the tender of the respondent on current schedule rate at the rate of 33. 75 percent. This contract was executed on 22-12-1972 and the respondent/contractor was directed to start the work. There arose disputes with regard to this contract. Respondent/contractor, according to the Arbitration clause of the contract, claimed an amount of Rs. 2,77,488. 10 and also 18% interest as damages on the amount against the appellant before the Arbitrator Shri B. C. Subba Rao, the retired Chief Engineer (Irrigation), the Arbitrator appointed by the Government. On 27-9-1979, E. E. Bengaga division, on behalf of the appellant, filed his written statement. The Arbitrator after giving an opportunity to the parties for producing evidence, heard and delivered his award that appellant State shall pay an amount of Rs. 10,314. 65 with interest at the rate of 12% to respondent. The award was presented in the court of C. J. I, Balaghat, who by his order dated 15-7-1982 set aside the award and remitted it to the Arbitrator for passing an award according to the directions. According to the direction of the Court, the arbitrator after hearing the parties delivered the revised award on 29-1-1982. When this revised award was filed before the court, it again remitted the award to the Arbitrator with the direction to take on record 11 documents filed by the respondent. Thus the award was also set aside with the direction to give an award after considering the said documents of the respondent. The Arbitrator concluded that as his term has expired, he was not competent to act as an Arbitrator. The Addl. Distt. Judge Shri Kailash Chandra agrawal passed an order on 29-11-1982 by which he held that Arbitrator Shri Subba Rao is declared competent to act as an Arbitrator in view of the order dated 21-7-1982. The arbitrator was directed to deliver the revised award within a period of 3 months. The E. E. Bengaga was also directed to place entire record before the Arbitrator Shri Subba rao. The said Arbitrator at last passed the second revised award after hearing the parties and by his letter dated 24-1-1983 along with record sent the award to the District court. According to this award the appellant State was required to pay to the respondent Rs. 71,561. 40 as full and final settlement of dispute referred to the arbitrator. The appellant was also required to pay an interest at the rate of 12% from 2-2-1974, on the amount awarded.

(3.) THE Distt. Judge on receiving the revised award and record from the arbitrator issued notice to parties inviting objections. The appellant/state on 17-3-1983 filed objections :-