ABHOY SARKAR Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has taken out the present application under sections 5, 11 and 12 of the Arbitration Act for revocation of the authority of the arbitrator, for his removal and appointment of a re arbitrator.

(2.) The application has been nude under (he following circumstances The petitioner entered into a contract dated 17.3.78 with the respondent for construction of Sealdah Railway Station's platform No. 4A and No. 5. This agreement contained an arbitration clause. This arbitration clause provided that if the claim of the claimant would exceed Rs 3,00.000.00 then the dispute arising out of this contract would be decided by two arbitrators. The parties also agreed regarding the qualifications of the persons to be appointed as the arbitrators. Clause 63(2) provided that both the arbitrators must be Railway officers of equal status. Clause 63(b) of the contract provided :

(3.) It is therefore clear that the parties agreed that the general manager of the Railway concerned will be the appointing authority. The contractor will have only the right to nominate a person from the panel to be appointed as his arbitrator by the appointing authority. It is also very clear that to be eligible to be appointed as arbitrators, bath the arbitrators must be of equal status and an officer in the Junior Administrative grade in the accounts department will be treated as having equal status with that of the officers in the intermediate administrative grade of other departments of the Railway concerned. Moreover, one arbitrator must be appointed from the accounts department.