UNION OF INDIA Vs. CH RADHANATH NANDA

JUDGEMENT

(1.) THIS is an appeal from the decision of the Additional Subordinate Judge of Cut-tack, setting aside an award given by an Arbitrator in a dispute between the parties.

(2.) THE plaintiff-respondent was a contractor who entered into the usual working Agreement (Ex. A) dated 14th August 1942 with the appellant for the construction of a landing ground and other structures at Charbatia in Cuttack District. Clause 25 of the Agreement contains the usual arbitration clause to the effect that any dispute between the parties in respect of the contract

(3.) THE learned lower court relied on Bharat Construction Co., Ltd. v. Union of India, AIR 1954 Cal 606 for taking the contrary view and Mr. Das also relied on that decision in support of his contention. That decision is distinguishable on facts, but some of the observations contained therein would support the view taken above. THEre the agreement between the contractor and the Government contained a clause to the effect that the dispute should be referred to the "sole arbitration of the Major General in charge of Eastern Command whose decision shall be final." THE question before the High Court was whether the expression "Major General" was a mere surplusage and whether the arbitration dispute could be referred to any officer in charge of the Eastern Command. THE learned Judges rejected this argument and held that unless the Officer in charge of the Eastern Command was also a Major General he had no jurisdiction to decide the arbitration dispute. Chakravarty, C. J. rightly emphasised the fact that there was no indication in the Agreement as to what the parties intended to be done if the Major General in charge was transferred to another station or otherwise ceased to hold the particular oifice. 1 may quote the following passage, at page 611;