STATE OF PUNJAB Vs. JAI BHUSHAN MALIK

JUDGEMENT

(1.) The instant appeal has been filed seeking to challenge the order dated 13.04.2018 passed by the Addl. District Judge, Barnala whereby, he has dismissed the application filed by the appellant under Section 34 of the Arbitration and Conciliation Act, 1996 (for short '1996 Act') for setting aside the award passed by the Arbitrator.

(2.) The facts in brief are that a bid of respondent No.1 was accepted by the appellant for the work of providing sewerage scheme at village Kattu, Block Barnala, District Barnala under the World Bank Scheme. On account of a dispute between the parties, arbitration clause was invoked by appointing an arbitrator, who accepted the claim of respondent No.1 by passing an award dated 27.06.2015 for a sum of Rs. 4,18,767/-. Aggrieved against the said award, the appellant herein preferred an application under Section 34 of 1996 Act for setting aside the award, which application was contested by respondent No.1-contractor. The ADJ, Barnala dismissed the said application filed under Section 34 of 1996 Act on the ground of non-compliance of Section 34(5), which stipulates the service of prior notice upon the other party and filing of affidavit endorsing such compliance, before filing objections under Section 34 of 1996 Act. Aggrieved against the said order of the ADJ, Barnala, the instant appeal has been filed. Notice of motion was issued in the matter and appearance has been caused on behalf of respondent No.1-contractor.

(3.) Mr. Sandeep Singh Deol, learned DAG Punjab, appearing on behalf of the appellant contends that the ADJ, Barnala has erred in dismissing the application, as the compliance of Section 34(5) of 1996 Act is not mandatory, as has been held by the Supreme Court in the case of State of Bihar & others vs. Bihar Rajya Bhumi Vikas Bank Samiti, Civil Appeal No.7314 of 2018, decided on 30.07.2018. It is submitted that in the said judgment, it has been held that Section 34(5) of 1996 Act is a procedural provision and infraction of which would have no consequence. It is prayed that the matter be remanded back to the ADJ, Barnala for a decision on merit.