PUNJAB STATE Vs. SANDHU SINGH & CO.

JUDGEMENT

(1.) THE petitioner-State is aggrieved against the order whereby the learned trial Court has dismissed the application of the petitioner for revocation of the authority of the arbitrator, respondent No. 2 herein in an application filed under Sections 5 and 11 of the Arbitration Act.

(2.) AN agreement for the construction of SYL Canal RD 22.000 to 26.000 was signed on 13.11.1984 between M/s Sandhu Singh and Company IE/12 Jhandewal Extension New Delhi (hereinafter referred as the contractor) and State of Punjab (hereinafter referred as the Employer). Vide letter dated 30.12.1989/2.1.1990 the contractor sought decision regarding some extra item from the Executive Engineer Chandpur Construction Division SYL Canal Project, Punjab Chandigarh. Clause 60 of the general conditions and contract contemplates the situation where the contractor is to carry out extra items in execution of the contract. It is contemplated that if the contractor considers any work demanded of him to be outside the requirements of the contract, or considers any drawings, record or ruling of the Executive Engineer on any matter in connection with or arising out of the contract or the carrying out of work to be unacceptable, he shall promptly ask the Executive Engineer in writing, for written instructions or decision. Clause 60 of the agreement contemplates that the Executive Engineer shall give his written instructions or decision within a period of thirty days of such request. The Clause further contemplates that if the Executive Engineer fails to give his instructions or decision in writing within a period of thirty days after being requested, or if the Contractor is dissatisfied with the instructions or decision of the Executive Engineer, the Contractor may within thirty days after receiving the instructions or decision appeal to the Superintending Engineer who shall afford an opportunity to the Contractor to be heard and to offer evidence in support of his appeal and shall give a decision within 60 days. If still the contractor is dissatisfied, he can indicate his intention to refer the dispute to the arbitrator. However, Clause 60 does not contemplate any situation if the Superintending Engineer does not decide the claim of the contractor within 60 days. However, Clause 61 contains arbitration clause. It is contemplated therein that within 30 days of the receipt of the notice from the contractor of his intention to refer the dispute to arbitration, the Chief Engineer shall send to the contract a list of three officers of the rank of Superintending Engineer. It is further contemplated that if the Superintending Engineer fails to send a list within thirty days, the contractors shall send a similar list to the Chief Engineer within 15 days. For ready reference Clauses 60 and 61 of the Contract Agreement are reproduced below :

(3.) THE Chief Engineer vide his letter dated 5.4.1991 advised the contractor to seek decision of their appeal pending before the Superintending Engineer who was to give decision within a period of 60 days after the submission of evidence by the contractor.