BELMARK CONSTRUCTIONS MONGHYR Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE present appeal has been filed under Section 39 (I) (vi) of the Arbitration Act, 1940 (hereinafter referred to as 'the Act') against the judgment and decree dated 21-8-1981 passed by Shri Gauri Shankar Chaube, Subordinate Judge, Jamui, in Title Suit No. 15 of 1980 refusing to pass a decree in terms of the award and dismissing the suit of the plaintiff.

(2.) ACCORDING to the appellant, the short facts of the case are that on 25-6-1971 an agreement was entered between the appellant and the Executive Engineer, Water Ways Division, Jamui on behalf of the Governor of Bihar in respect of the contract of earth work and damfill and spill way works of Kailash Ghat Reservoir Scheme. The work was to commence on 25-6-1971 and to be completed in twenty four months. However, the same could not be completed and the parties blamed each other for non-completion of the same. Ultimately, on 23-1-1974 the contract work was rescinded which gave rise to a dispute between the parties with regard to the terms of the contract. Thereafter a notice under Section 80, C. P. C. read with Section 8 of the Act was served upon the respondent for entering into the arbitration and decision by an arbitrator as per the agreement, who was the Superintending Engineer, Water Ways Division, Deoghar. Having not received any reply from the responcent on 21-1-1977 an application under Section 8 of the Act to appoint in independent arbitrator was filed by the appellant in the court of Sub-Judge, Jamui, which was registered as Misc. Case No. 4 of 1977. The respondent also appeared in the said case. On 6-10-1978 Shri Ram Anugrah Prasad Sinha, Ex- Government Pleader, Monghyr was appointed as Arbitrator with the consent of the parties. A direction was given to him to file the award within four months of the receipt of the reference. On 7-3-1979 a writ was issued which was received by the arbitrator on 13-3-1979. After, examination of the witnesses adduced by the parties and hearing them the award was issued on 24-1-1980 with respect to the claim of the appellant awarding Rs. 2,79,934/- under different heads. The details are as follows : <FRM>JUDGEMENT_550_BLJ2_1993Html1.htm</FRM> It is stated that both the parties participated in the proceeding before the arbitrator without challenging his appointment/authority.

(3.) THIS appeal has been filed by the appellant against the aforesaid judgment setting aside the award, and dismissing the suit. THIS matter was earlier heard by a learned single Judge, who, by this order dated 19-8-1986. referred the matter to be heard by a Division Bench for decision on the points formulated in the order dated 19-8-1986 which run as follows: