BIHAR STATE ELECTRICITY BOARD Vs. KHALSA BROTHERS

JUDGEMENT

(1.) This appeal under S.39 of the India Arbitration Act, 1940 is directed against the decision of Additional Subordinate Judge, Patna, making the Award of an Arbitrator a rule of the Court after certain modification.

(2.) The parties to the appeal entered into a contract for making certain constructions. The respondent-firm undertook to execute the work as per the agreement dt/- 12-9-1969. The work commenced in Sept. 1969 but could not proceed after a few months. Certain differences arose between the respondent and the appellant-Electricity Board, the other contracting party, and the dispute was, as per the agreement, referred to the arbitration of Sri P.R. Guha, Chief Engineer (Retired), River Valley Project Department, Bihar. The parties filed their written statements and fully participated in the proceeding before the Arbitrator. Ultimately, an Award was made and filed in court in Aug. 1972. The appellant raised several objections against the Award, and a suit was, therefore, registered in the court below in which the contract or respondent was described as the plaintiff and the appellant-State Electricity Board as the defendant.

(3.) The plaintiff made a total claim of about Rs. 34 lacs and the Board, a counter, claim of over Rs. 1 crore 23 lacs. The Arbitrator accepted the claim of the plaintiff to the tune of Rs. 12,67,057.00 and the counter claim of the defendant for a sum of Rs. 66,054.00 and directed the Board therefore to pay a sum of Rs. 12,01,003.00. The court below modified the amount by reducing the sum of Rs. 12,67,057.00 to Rs. 10,38,087.00 and substituting the sum of Rs. 66,054.00 by Rs. 81,386.00. It held that the items of claim and counter claim were severable and the modifications were thus legally permissible without setting aside the entire Award.