STATE OF PUNJAB Vs. N.V. INTERNATIONAL

JUDGEMENT

(1.) LEARNED Single Judge on August 23, 2005 had deemed it appropriate that F.A.O. No. 3799 of 2005 be heard by a larger Bench because the point involved interpretation of the judgment of the Supreme Court in Union of India v. M/s. Popular Construction Company, 2002(1) RCR(Civil) 124 : AIR 2001 SC 4010. Later in F.A.O. No. 4750 of 2005 the learned Single Judge expressed against the same view on October 18, 2005. Therefore, both the above cases are before this Bench and shall be decided together since the questions of law are the same.

(2.) THE State of Punjab had an agreement with M/s. N.V. International which contained an arbitration clause. Therefore, when a dispute arose the matter was referred to the Arbitrator, Shri B.R. Bajaj, I.A.S., Principal Secretary to Government of Punjab, Department of Finance. The Arbitrator passed an award on February 13, 2004, accepting the claim of the N.V. International for refund of Rs. 28.00 lacs which had been forfeited by the State and ordered release of this amount within one month from the date of the award.

(3.) THEREAFTER , the State of Punjab filed a civil miscellaneous application seeking modification of the order and grant of reasonable time to file objections before the Civil Court under Section 34 of the Act. The said application was dismissed on January 13, 2005. The petition under Section 34 of the Arbitration and Reconciliation Act, 1996 for setting aside the award dated February 13, 2004 was finally filed on January 15, 2005 and when it came up before the learned Additional District Judge, Chandigarh the Court was pleased to hold that the objections were hopelessly time barred and dismissed the objection petition vide judgment dated June 1, 2005.