STATE OF PUNJAB Vs. RAMESH KUMAR

JUDGEMENT

(1.) THE State of Punjab and its authorities have come up with this Civil Revision impugning the order dated 19.10.1987 passed by Sub-Judge Ist Class, Sangrur, allowing the application of respondent-Ramesh Kumar filed by him under Section 14 of the Arbitration Act, 1940, and also the judgment dated 8.12.1989 passed by Additional District Judge, Sangrur, dismissing their appeal against the order dated 19.10.1987 of Sub-Judge Ist Class, Sangrur. Vide the aforementioned order, the learned Civil Court set aside the award dated 11.2.1985 passed by the Arbitrator and directed appointment of the then Superintending Engineer of Construction Circle, P.W.D. (B&R), Sangrur as a new Arbitrator in terms of Clause 25-A of the agreement entered into between the parties to hold fresh arbitration proceedings. As stated earlier, the aforementioned judgment was also upheld by the Additional District Judge, Sangrur.

(2.) THE respondent-contractor was assigned some work in relation to S.R. Raj Higher Secondary School for boys at Sangrur. Certain disputes arose in relation to execution of the said work between the contractor and the authorities of P.W.D. (B&R), Government of Punjab. This led to the appointment of an arbitrator, namely, the then Superintending Engineer, Construction Circle P.W.D. (B&R), Sangrur to act as an Arbitrator in terms of agreement No. 5/79-80 entered into between the parties. The contractor had claimed a total payment of Rs. 1,15,351.49 under seven heads of claims before the Arbitrator. On a consideration of his claim, the learned Arbitrator vide his impugned award dated 11.2.1985 rejected six of the claims and only one claim, namely, claim No 6 was partly accepted to the tune of Rs. 550/- and consequently an award of Rs. 550/- was passed in favour for the contractor against the claim of Rs. 1,15,351.49. While the authorities of the State Government wanted that the award be made rule of the Court, the contractor raised certain objections against the same. The learned Civil Court vide its impugned order dated 19.10.1987 held that the award was totally non-speaking and did not reflect application of mind on the part of the Arbitrator and that "allegations of the petitioner seem to have a ring of truth. It is not, therefore, wrong to say that the Arbitrator misconducted himself..". Based upon these findings, the award dated 11.2.1985 was set aside and since the Arbitrator had by that time been transferred, his successor, Shri J.S. Kaila, Superintending Engineer, Construction Circle P.W.D. (B&R), Sangrur, was directed to be appointed to act as an Arbitrator in terms of clause 25-A of the agreement in question. The State of Punjab and its authorities were aggrieved of the aforementioned order and preferred an appeal. This too met with the same fate when it was dismissed vide impugned judgment dated 8.12.1989. Aggrieved by both these judgments and orders the present Civil Revision has been filed.

(3.) WITH a view to appreciate the controversy, it will be profitable to reproduce the award in question in extenso, which reads as under :- Award In the matter of an arbitration between Shri Romesh Kumar Contractor and Executive Engineer, Provincial Division P.W.D. (B&R), Sangrur regarding the work of S/R Raj Higher Secondary School for Boys at Sangrur. Whereas in an agreement No. 5/79-80 made between Shri Ramesh Kumar Contractor and the Punjab Government through the Executive Engineer, Provincial Division PWD (B&R), Sangrur for the work of S/R Raj Higher Secondary School for Boys at Sangrur, Shri Ramesh Kumar, Contractor referred to me, J.S. Kaila, PSE-I, Superintending Engineer, Construction Circle PWD (B&R), Sangrur for the arbitration under clause 25A of the matter of difference between them concerning the following :- Claim of the contractor Claim No. I Refund of Security money Rs. 1800.00 Claim No. II Interest @ 18% P.A. on the amount due to be paid to me with effect from 15.9.80 as the amount remained with the Department. Claim No. III Rs. 10,000/- for persuing the case as the department failed to make payment. Rs. 10,000/- Claim No. IV Damages caused by the Department to my profession as contractor by way of inflicting financial hardship upon me. Rs. 50,000/- Claim No. V The work done by me but not included in my so-called final bill. Rs. 39,384.24 Claim No. VI Un-justified recoveries effected from my final bill. Rs. 12,674.05 Claim No. VII Recovery for carrying out the work at the risk and cost. Rs. 1493.20 Total Rs. 1,15,351.49 Now, I the said J.S. Kaila, PSE-I, Superintending Engineer, Construction Circle, PWD, Sangrur having considered the whole matter submitted to me, do hereby make my award as follows :- Claim No. I Claim withdrawn. Claim No. II I award Rs. Nil Claim No. III I award Rs. Nil Claim No. IV I award Rs. Nil Claim No. V I award Rs. Nil Claim No. VI I award Rs. 550.00 Claim No. VII I award Rs. Nil Total award in favour of Shri Ramesh Kumar, Contractor is Rs. 550.00 (Rs. Five hundreds and fifty only). Net amount to be paid to be contractor by the Executive Engineer, Provincial Division, Sangrur is Rs. 550.00 (Rs. five hundred and fifty only). The cost of stamp papers required for award amounting to Rs. 15/- (Rs. fifteen only) shall be borne by the Executive Engineer, Provincial Division PWD (B&R), Sangrur. In witness whereof I the said J.S. Kaila PSE-I, Superintending Engineer, Construction Circle PWD (B&R), Sangrur the Arbitrator have here to signed at Sangrur, the 11th Feb., One thousand nine hundred and eighty five. Pronounced Sd/- (J.S. Kaila) Arbitrator.