HINDUSTHAN AERONAUTICS LIMITED Vs. DAS ELECTRIC TRADING COMPANY

JUDGEMENT

(1.) THIS appeal under Section 39 of the Arbitration Act, 1842 has been filed by Hindusthan Aeronautics Limited, a Government of India Enterprise assailing the judgment dated 26th August, 2000 passed by learned Civil Judge (Senior Division), Koraput in O.S. No.27 of 2000.

(2.) THE scenario of facts reveal that the appellant -company after following all paraphernalia selected and awarded execution of work, i.e., "Internal Power Distribution, Lighting of Block 5B and 6B, Electrification of Stores Block and re -sitting of machineries in Block No.5" to the respondent -firm. An agreement was entered into between the appellant -company and the respondent -firm on 4.8.1986 stipulating different terms and providing other specifications with regard to the execution of the said work. After execution of the agreement, the respondent -firm commenced its work as per the terms. During such execution, inter -se disputes cropped up between the appellant and the respondent, consequently in consonance with the terms of the agreement, which stipulated that any dispute arising out of or relating to the work in question, shall be decided by the arbitrator, the respondent issued a letter stating that he intends to invoke the arbitration clause for deciding the inter -se disputes. Consequently, Sri Ashok Kumar Rath, Chief Engineer of M/s. National Aluminimum Company, Damonjodi was appointed as the sole arbitrator and the dispute was referred to him for adjudication. Both parties appeared before the Arbitrator and put -forth their claim. The arbitrator after hearing the parties, passed the award. For the sake of brevity of the operative portion of the award is quoted here -in -below for better understanding :

(3.) THE said judgment is assailed by the appellant in this appeal. The respondent, on the other hand, filed M.A. No.813 of 2000 assailing the judgment passed by learned Civil Judge (Senior Division) modifying the award and holding that the respondent would not be entitled to pendentilite interest, return of sales tax and damages.