JAS ENTERPRISES Vs. KARANPARA DEVELOPMENT CO LTD

JUDGEMENT

(1.) The Court: This application has been made under section 12 of the Arbitration and Conciliation Ordinance 1996, which has since been replaced by the Arbitration and Conciliation Act, 1996, inter alia, for leave to the petitioner to revoke the authority of Sri I.M. Puri appointed as the sole arbitrator and to remove him from the reference in respect of the disputes and differences arising out of the contract in question.

(2.) Appearing in support of the application, Mr. Priayabrata Mukherjee submitted that a notice inviting tenders was published to the Ranchi Express on 2nd August, 1994, and the petitioner's tender in respect thereof was duly accepted and Work Order was issued to the petitioner.

(3.) Disputes, however, arose between the parties over the execution of the work and it was submitted by Mr. Mukherjee that, inasmuch as, the respondents had failed to allot sufficient work to the petitioner in terms of the work order, the petitioner was compelled to keep its machineries an other equipment idle for along time. The petitioner submitted a bill to the respondents for a sum of Rs. 41 lakhs, giving credit of Ra. lakhs India which had already been realised, which included a claim in regard to forced idleness. Mr. Mukherjee submitted that since disputes were raised in respect of the said bill, the petitioner filed an application under Article 226 of the Constitution m the High Court at Patna, but withdrew the same as the agreement provided for the arbitration proceedings to be held in Calcutta.