STATE OF ORISSA Vs. CIVIEN CONSTRUCTION CO

JUDGEMENT

(1.) THE plaintiffs in an application under Section 20 of the Arbitration Act of 1940 in the court of the Subordinate Judge, Bhubaneswar are petitioners.

(2.) OPPOSITE Party No. 1, a firm of contractors had undertaken construction of the Orissa Bhawan at New Delhi on behalf of the State of Orissa under a written agreement and the lump sum amount had been stipulated at Rupees 23,34,000/-. The work is said to have begun in Feb., 1977, but in Sept., 1979 the State Government rescinded the contract and levied liquidated damages of Rs. 46,68,000/-. The contractor served a notice under Section 8 of the Arbitration Act on the Chief Engineer concerned and demanded that the disputes indicated in the notice be referred for arbitration. The Chief Engineer had not taken any action on the notice when on behalf of the State and the Executive Engineer an application under Section 20 of the Arbitration Act was filed before the learned Subordinate Judge of Bhubaneswar. On 15-12-1979 the court allowed the prayer of the State and directed the contractor to produce the original agreement and asked the parties to submit an agreed name for being appointed as Arbitrator. He further directed that the disputes as raised in the plaint by the State and as raised by the defendant (contractor) in the claim statement filed should be referred to the Arbitrator for adjudication. The learned Subordinate. Judge appointed Sri M. C Pani, a retired Chief Engineer, as Arbitrator. On behalf of the State, the appointment of Sri Pani was challenged in Civil Revision No. 39 of 1980 and this Court directed substitution of Sri Pani by Sri A. B. Jena, a Superintending Engineer in the employment of the State Government, as Arbitrator. The State Government then filed an application before the Subordinate Judge on 19-12-1979 for a review of the direction on 15-12-1979 regarding reference of the contractor's disputes for arbitration. On 5-2-1980 the learned Subordinate Judge made the following order:-- "Received the record from the Hon'ble Court today. Seen the orders passed in C. R. Nos, 703/79 and 39/80. In place of Sri M. C. Pani the Hon'ble Court appointed Sri A. B. Jena, Superintending Engineer, Eastern Circle, Killa Fort, Cuttack to act as Arbitrator. 2. As regards the review petition, the petitioner seeks to delete the following portion of the judgment:-