STATE OF WEST BENGAL Vs. HARIPADA SANTRA

JUDGEMENT

(1.) THE short question that crops up for determination in this revisional application is if in terms of clause 13 approval in West Bengal Form No. 2908, Department of Public Works, Tender for supply of materials, reading as 'in the event of a dispute the decision of the Superintending Engineer of the Circle shall be final' constituted an arbitration agreement.

(2.) THE parties herein entered into an agreement for supply of materials and the said agreement is embodied in the form referred to above. THE opposite parties supplied the materials in question as directed and as an amount of Rs. 2, 50, 000/- was not paid, they invoked clause 13 of the said agreement and asked the Superintending Engineer to enter into an arbitration. As it was refused they filed Judicial Misc. Case No. 37 of 86 in the court of the Assistant Dist. Judge, Alipore for referring the dispute to arbitration by Mr. H.B.Lahiri, a retired Superintending Engineer, Construction Board, Directorate of Public Works Department as Arbitrator to settle the dispute. THE State appeared and contended that there was no arbitration clause and therefore the question of appointment of an arbitrator does not arise. THE Id. Trial Judge construed clause 13 as an arbitration agreement and allowed the application. THE aforesaid order is under challenge before us.

(3.) MR. Deb, Id. advocate appearing for the opposite party on the other hand contended that the agreement as embodied in clause 13 clearly stipulates that in the event of dispute the matter has to be decided by the Superintending Engineer and his decision shall be final. This clause according to MR. Deb constitute an arbitration clause.