SHRI BABULAL GARODIA Vs. THE UNION OF INDIA

JUDGEMENT

(1.) (Oral) - The appellant entered into a contract with the Union of India represented by Commander, Hq. Works Engineers, Chabua for "re-surfacing to existing aprons at Mohanbari Air Field". During the course of execution of the work differences and disputes arose between the parties and these were referred to arbitration as per clause 70 of the Agreement. It is stated at the Bar that the claim of the appellant before the Arbitrator was Rs. 2,00,000.00(Rupees two lakh) and odd. The Arbitrator after considering the entire matter awarded a sum of Rs. 37,000.00 (Rupees thirty seven thousand) and odd against the present appellant. The learned Assistant District, Judge, Dibrugarh by the impugned order dated 31.3.75 passed in Money Suit No. 24 of 1971 made the award a Rule of the Court and hence the present appeal.

(2.) The only point urged by Mr. Goswami, learned counsel for the appellant before this Court is the legal misconduct of the Arbitrator in the proceeding as he did not allow the appellant to adduce evidence there by violated the principles of natural justice.

(3.) Mr. Sk. Chand Mohammad, learned Senior Central Govt. Standing Counsel has strenuously urged that there was no legal misconduct on the part of the Arbitrator during the proceeding, and as such, the lower Court validly and legally made the award a Rule of the Court. In this connection Mr. Sk. Chand Mohammad has further urged that this being an arbitration proceeding the Court cannot sit in appeal and even if the Arbitrator committed an error of law this cannot be challenged before the Court. Mr. Sk. Chand Mohammad has placed reliance on two decisions r f the Apex Court In M/S. Hindusthan Tea Company Vs. M/S. K. Sashi Kant and Company, AIR 1987 S.C. 81 , it was held that under the law the Arbitrator being the final arbiter of the dispute between the parties the award made by him is not open to challenge on the ground that he reached a wrong conclusion or failed to appreciate the facts In M/S. Tarapore and Compauy Vs. Cochin Shipyard Ltd., AIR 1984 S.C. 1072 , the Apex Court held that an error of law committed by the Arbitrator on specific question of law cannot be challenged.