STATE OF PUNJAB Vs. RAM CHAND CONTRACTOR

JUDGEMENT

(1.) This revision petition arises out of the judgment dated 3rd March, 1978 of the Additional District Judge, Patiala, in appeal whereby he set aside an award dated 12th March, 1962 of the Arbitration Committee as also the order dated 31st July, 1976 of the trial Court making the said award a rule of the Court.

(2.) The facts in brief are that Ram Chand, contractor, respondent in this petition (hereinafter referred to as 'the contractor') entered into an agreement with the State of Punjab (hereinafter referred to as 'the State') for excavation of Bhakra Main Line 432-434 vide Work Order No. 54/2-A dated 25th April, 1951. There was a term in the Work Order to the effect that in the matter of the dispute between the contractor and the State, the same shall be referred to the Settlement Committee consisting of Superintending Engineer, an Officer of the Finance Department not below the rank of the Deputy Secretary and an Accounts Officer, all to be nominated by the Government for arbitration whole decision would be final. The contractor raised a dispute and made a claim for Rs. 4,000/- before the Settlement Committee and requested for arbitration through an application dated 28th April, 1959 on a prescribed proforma which was registered with the Settlement Committee at No. 3404 dated 14th December, 1961. It is further alleged that the State made a counter claim for Rs. 5620/- against the contractor.

(3.) The record shows that later on the contractor and the Executive Engineer on behalf of the State agreed in writing on 14th December, 1961 that the said arbitration be heard by the arbitrators and that the decision by them would be binding on the parties. This agreement in writing between the parties is at page 12 of the arbitration proceedings. The arbitrators made their award dated 12th March, 1962 wherein they considered the claim for Rs. 4,000/- submitted by the contractor in respect of the aforesaid Work Order. To appreciate the contention of the parties, it would be proper to reproduce text of the award :