UNION OF INDIA Vs. SHREE BHARAT BUILDERS

JUDGEMENT

(1.) THIS is an application filed by the petitioners under Section 24 read with Section 151 CPC and Section 41 of the Arbitration Act, 1940, seeking transfer of Arbitration Misc. Case No. 118 (T)/1998 pending in the court of Assistant to Deputy Commissioner at Shillong to any competent court at Guwahati, Assam.

(2.) THE case of the petitioners, in brief, is that, the opposite parties had been awarded a contract work of the amount of Rs. 5,58,228. 79 duly executing a contract agreement. The execution of the work as per the contract was completed in December 1992 and an undisputed portion of the bill claimed by the opposite parties was paid on 22. 1. 95. After the completion of the work, the opposite parties/contractors raised certain further claims. As the claims so raised by them were not agreed to by the department, a dispute arose and on the request made by the opposite party No. 1, the Chief Engineer (Air Force), Shillong Zone, appointed at Arbitrator. The Arbitrator entered into reference, took up hearing and published his award dated 31. 10. 98 under Section 14 (1) of the Arbitration Act, 1940. Consequent upon the publication of the award, the opposite party No. 1 filed an application under Section 14 of the Arbitration Act, 1940 in the court of Assistant to the Deputy Commissioner at Shillong for filing of the award and for making the award a Rule of the Court. The said application was registered as Arbitration Misc. Case No. 118 (T)/1998 and notices were issued directing the sole Arbitrator to file the original award and also calling for objections.

(3.) IT is the case of the petitioners that the contract work in respect of which the dispute arose was executed at Kumbhigram which falls in the State of Assam. The parties to the contract agreement had their head office at Guwahati where they also had their place of residence. Hence, the application under Section 14 of the Arbitration Act ought to have been filed in any competent court in Guwahati and not in the court of Assistant to the Deputy Commissioner, Shillong. It is thus prayed that the Arbitration Misc. Case No. 118 (T)/98 be transferred to a competent court at Guwahati for further adjudication from the court of Assistant to the Deputy Commissioner, Shillong.