IMPROVEMENT TRUST Vs. SHIVA ENTERPRISES AND ORS.

JUDGEMENT

(1.) This is an appeal that has been filed seeking to challenge the award dtd. 23/10/2003 whereby the claim filed by the respondents has been allowed and the objections filed by the appellant herein stand dismissed.

(2.) Learned counsel for the appellant herein contends that a tender was floated for construction of 200' wide road within the Improvement Trust Scheme, Bathinda. A dispute arose regarding payment of earth work in the said construction of 200' wide road which led to the respondents herein preferring a claim before the Arbitrator-cum-Superintending Engineer, Construction, Circle, PWD (B&R), Bathinda through a letter dtd. 12/7/2002 for adjudication of the claim. The said claim was contested and one of the grounds taken therein was that there was no arbitration agreement between the parties with regard to allotment of work, apart from contesting the liability to make any payment towards the work done. The Arbitrator by an award dtd. 23/10/2003 allowed claim No.1 to the extent of Rs.389,122.00 while rejecting claim Nos. 2 and 3. He further awarded interest @ 10% on the awarded amount i.e. Rs.3,89,122.00 from the date of announcement till realization. The said award was challenged by the Improvement Trust appellant herein under Sec. 34 of the Arbitration and Conciliation Act, 1996, which objections too were dismissed.

(3.) Learned counsel for the appellant raises solitary question as to whether an award could be passed in the face of the fact that there was no arbitration agreement.