ZILA PARISHAD, GURGAON Vs. PREM CHAND JAIN

JUDGEMENT

(1.) Prem Chand Jain, a contractor of Gurgaon, was given a contract for constructing the Panchayati Raj Training Centre at village Arjonda, near Faridabad (District Gurgaon) by the Zila Parishad, Gurgaon, in pursuance of an agreement dated 7th May, 1966. It was provided in the said agreement that if ever some dispute arose between the parties, the same would be referred to the arbitration of the Superintending Engineer, Panchayati Raj, Public Works Department, Haryana. It appears that subsequently this particular post of the Superintending Engineer was abolished and the parties agreed to refer the dispute to any Superintending Engineer of the Public Works Department. Disputes having arisen, the same were referred to the Superintending Engineer, Ambala Circle, on 13th January, 1969 and he gave his award on 17th May, 1969.

(2.) On 20th June, 1969, Prem Chand Jain made an application to the Senior Subordinate Judge, Gurgaon, under Sections 14 and 17 of the Arbitration Act, 1940 , for getting the award filed and made a Rule of the Court. On 21st June, 1969, notice of this application was sent to the Zila Parishad for 22nd July, 1969. On 22nd July, 1969, Shri Mehar Chand Advocate, appeared for Prem Chand Jain, one Jagmohan, Stenographer, for the Arbitrator and one Om Parkash. Overseer's presence had been recorded for the Zila Parishad by the learned Senior Subordinate Judge. In the order passed by him on that date, it is said that the award and the proceedings have been filed by the Arbitrator and the reply be given on 24th July, 1969. On that day, Shri Mehar Chand's presence is recorded for Prem Chand Jain and none appeared either for the Arbitrator or the Zila Parishad, and the order of the Court is that objections against the award, if any, be filed within time. The next date fixed was 23rd August, 1969. On that date, Shri Mehar Chand's presence has been recorded and nobody appeared either for the Zila Parishad or the Arbitrator and the order of the Court says that no objections had been filed against the award. On that very day, the statement of the counsel for Prem Chand Jain was recorded and he stated that he had not to file any objection against the award and the same be made a Rule of the Court. It was also stated by him that after the making of the award, the Zila Parishad had paid Rs. 3180/- to his client and, consequently, a decree for the remaining amount of Rs. 2548.80, mentioned in the award, be passed. on the same day, the learned Senior Subordinate Judge granted a decree for Rs. 2548.80 in favour of Prem Chand Jain against the Zila Parishad in terms of the award. On 5th November, 1969, the Zila Parishad made an application under Section (5) and Order 9, Rule 13 Civil Procedure Code, for setting aside the ex-parte decree dated 23rd August, 1969, passed against them. It was stated therein that the judgment-debtor came to know of this decree on 18th October, 1969, for which date summons had been issued by the COurt to them. On 18th October, 1969, Shri Khem Chand Gupta, Counsel for Zila Parishad, was given the power of attorney for appearance in Court. The said counsel, after enquiry, informed the Zila Parishad that a decree had already been passed against them on 23rd August, 1969. After the inspection of the file, the application for setting aside theex-parte decree was, consequently filed. The main ground taken in the said application was that no notice filing the award in Court was served on the judgment-debtor and consequently, no opportunity for filing objections against the said award within 30 days had been given. That being so, the decree based on award was void and a nullity. It was also stated that the said decree had been passed in excess of the award.

(3.) This application was contested by Prem Chand Jain. His case was that the same barred by limitation, because the judgment-debtor knew of the passing of the decree, as on that day the Sub-Divisional Officer and the Overseer were present in Court on behalf of the Zila Parishad, but their presence was not recorded as they were not authorised by the said Zila Parishad. It was also said that the notice of the filing of the award in Court was duly served on the judgment-debtor and 30 days time was given to them for putting in the objections.