STEEL CO (CONSTRUCTION Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal by the plaintiff has been filed under Sec. 39 (1) (iii) of the Arbitration Act against the order passed by the 1st Additional Subordinate Judge, Patna, modifying the award of the arbitrator with regard to claim No. 5. The Union of India, defendant No. 1 to the suit has also filed cross-objection with respect to the items of the award on the basis of which the trial court directed for preparation of a decree.

(2.) The appellant filed a suit under Sec. 14 of the Arbitration Act, 1940 for preparation of a decree on the basis of an award submitted by defendant No. 2. According to the appellant, a dispute arose regarding a contract which he had taken by means of an agreement with defendant No. 1. According to the terms of the contract, defendant No. 2 was appointed as a sole arbitrator, who after hearing the parties and considering all the materials before him gave his award on 6/7/1969. A prayer, therefore, was made that the arbitrator may be asked to file the said award in the court and on the basis of that award a decree be passed.

(3.) The suit was contested by defendant No. 1, the Union of India. According to it, the award was illegal, invalid and improper and, as such, it could not be made the basis for a decree.