JADAVJI WALLAMJI Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) This is an application on behalf of a contractor under Sec. 20(1) of the Indian Arbitration Act, 1940, to file the arbitration agreement between him and Union of India represented by the General Manager, South Eastern Railway. On or about March 29, 1962, the Plaintiff entered into an agreement with the Defendant who was acting through the General Manager of the Dandakaranya Balangir Kiriberu Railway Projects for construction of some well foundation and masonry structure in piers of bridge. The said project which originally had its office at Waltair has recently been merged with the South Eastern Railway which has its office at No. 1 India Exchange Place in Calcutta within the jurisdiction of this Hon'ble Court. The said agreement contains an arbitration Clause and also detailed procedure to appoint two arbitrators, the material portions of which read as follows:

(2.) Disputes and differences arose between the Plaintiff and the Defendant relating to the said contract which fall within the scope of the said arbitration agreement. In March 1963, the Plaintiff made several representations claiming enhanced rate for his work in excavations deeper than those showing in the drawings. The Railway authorities by their letters dated March 8, 1963 and June 23, 1966, refused to accede to the request of the Plaintiff for enhancing the rates. It is also alleged that the Defendant has wrongfully withheld the Plaintiff's security deposit amounting to Rs. 46,416 although the Defendant has no claim whatsoever against the Plaintiff. The Plaintiff thereafter, by letters dated March 27, 1967 and July 31 1967, through his Solicitor, Mr. S.K. Guha, addressed to the Defendant to refer the said disputes to arbitration in terms of the said arbitration clause. In the last paragraph of the said letter dated March 27, 1967, the following statements are made:

(3.) Mr. Bholanath Sen, counsel on behalf of the Petitioner, has submitted that the arbitration agreement should be filed in this Court under Sec. 20 inasmuch as, admittedly, there has been an arbitration agreement between the parties and disputes and differences have arisen.