JAINARAIN SINGH Vs. STATE OF BIHAR

JUDGEMENT

(1.) ON a difference arising between two learned Judges of this Court, this appeal under Section 39 of the Arbitration Act (hereinafter called 'the Act') has been placed before me.

(2.) IT appears that the appellants filed an application purporting to be under Sections 8, 14 and 20 of the Act, for the purpose of referring a dispute arising between them and the State of Bihar and its officers in respect of a construction work allotted to the appellants. The appellants had entered into a contract with the respondents for doing some earth work in connection with an Irrigation Scheme. The work could not be completed within time. According to the appellants this happened because they came across semi-hard rocks and there was famine-condition in the vicinity. Extension of time, prayed for, was, however, not allowed. By a letter dated the 15th of June, 1967, the appellants were asked to show cause why penalty as per, terms of the contract should not be imposed on them. Ultimately, the contract was rescinded by a subsequent letter dated the 5th of March, 1968. Thus, the appellants served a notice under Section 80 C.P.C, and ultimately filed the present application for reference of the matter of arbitration in accordance with the terms of the agreement.

(3.) BEING aggrieved with this award the appellants filed an application under Section 30 of the Act for setting aside the same. The learned Subordinate Judge held that there was no good reason for setting aside the award. Accordingly he rejected the application. Hence this appeal.