UNION OF INDIA Vs. PAM DEVELOPMENTS PVT LTD

JUDGEMENT

(1.) This is an application under section 34 of the Arbitration and Conciliation Act, 1996 (the 'said Act' in short) for setting aside of the award made and published on January 25, 2002 by Mr. Satyabrata Mitra, a retired Judge of this Court.

(2.) On April 9,1992 the petitioner invited tenders for construction of industrial covered electrical loco-shed and allied works at Santragachi (Phases I and II). The respondent submitted its tender. The petitioner accepted the offer of the respondent by a letter dated October 19, 1992. A formal agreement was, also, entered into between the parties being contract agreement No. CPM/GRC/36/ 92 dated October 19, 1992. The said agreement, inter alia, incorporated the general conditions of contract and some additional special conditions and specifications. The arbitration clause was as under:

(3.) The General Manager, while so appointing the contractor's nominee, will also appoint a second arbitrator as the Railway's nominee either from the panel or from outside the panel, ensuring that one of the two arbitrators so nominated is invariably from the Accounts Department. Before entering upon the reference the two arbitrators shall nominate an Umpire who shall be a Gazetted Railway Officer to whom the case will be referred to in the event of any difference between the two arbitrators. Officers of the Junior Administrative grade of the Accounts Department of the Railways shall be considered as of equal status to the officers in the intermediate administrative grade of other departments of the Railway for the purpose of appointment as arbitrators.