SARDAR AMARJIT SINGH Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) This is an appeal under section 39(iv) of the Arbitration Act, 1940 against the order of the District Judge, rejecting the appellant's application under section 20 of the Arbitration Act for filing of the arbitration agreements and referring the dispute to the arbitrator.

(2.) The appellant was granted contract Nos. 5 to 7 DL from collection of Moorum on the Belkheda-Maregaon section of National High way No 12 for 59 to 61 kilometers. It is common ground that the appellant did not complete the work. As per terms of the agreements. the work was completed through another contractor and the excess amount incurred in completing the work, i.e. Rs. 91,244/- was sought to be recovered from the appellant. The appellant in turn made a claim of Rs. 60,000/- towards the work already completed, including refund of the security of Rs. 20,000/-. The appellant then requested the Superintending Engineer to refer the dispute for arbitration under clause 19 of the agreements. The Superintending Engineer by his order dated 15-12-1975 rejected the claim of the appellant and therefore the present application was filed under section 20 of the Arbitration Act by the appellant. The respondents contended that the arbitration clause was not available to the appellant, as the Superintending Engineer has already communicated his decision on the claim made by the appellant. The appellant had voluntarily accepted the measurements, after due notice to him, and nothing remains to be paid to him and on the other hand, he is liable to pay an amount of Rs. 31,244/-.

(3.) The learned District Judge by the impugned order held that the appellant has not detailed the claim of work actually undertaken, nor has claimed any damages for cancellation of his contract; mere averment regarding existence of dispute did not satisfy the requirements of section 20 of the Act; though the respondents have not expressly pleaded the bar of limitation, the application under section 20 of the Act was barred under Article 137 of the Limitation Act, 1963, as the application was not moved within three years of the cause of action and as per clause 19 of the agreements, the decision of the Superintending Engineer has become final.