UNION OF INDIA Vs. O.C.C. LTD.

JUDGEMENT

(1.) The Civil Revision as well as the Misc. Appeal arises out of O.S. No. 143 of 1990 -1. The Defendants are Union of India, South Eastern Railway and its officers. Opposite Party No. 1 -M/s. Orissa Construction Corporation Limited, who is the sole Plaintiff, filed the aforesaid suit under Section 20 of the Arbitration Act, 1940. By Order Dated 9.3.1994, the Learned Civil Judge (Senior Division), Bhubaneswar directed Defendants 1 to 3 to produce the original agreement made between M/s. OCC Limited and Union of India. Being aggrieved by the said order, Defendants 1 to 3 have filed Misc. Appeal No. 100 of 1996. The civil revision has also been filed by the same Defendants being aggrieved by the Order Dated 20th January, 1995 passed by the Learned Civil Judge in the said suit whereby he directed that the appointment letter along with relevant documents be sent to the Arbitration Tribunal, Orissa, Bhubaneswar for adjudication of the disputes between the parties according to law. Since the misc. appeal as well as the civil revision arises out of one suit and the parties are same, both were heard together and are being disposed of by this common Judgment.

(2.) The brief facts, as narrated in the records, are as follows; M/s. OCC Limited had undertaken to execute certain work for the Railways on the Koraput -Rayagada railway line. As the said company defaulted to complete the work within the scheduled time, the contract made between the parties was rescinded and on such rescission of the contract, the Railways was entitled to encash the bank guarantee furnished by M/s. OCG Limited as security lot adjustment against the mobilization advanced by the Railways to M/s. OCC Limited for the work in question.

(3.) Being aggrieved by the said rescission of the contract, M/s. OCC Limited filed an application under Section 20 of the Arbitration Act, 1940 before the Learned Civil Judge (Senior Division), Bhubarneswar, which was registered as O.S. No. 143 of 1990 -1.