UNION OF INDIA Vs. D KHOSLA

JUDGEMENT

(1.) Since identical questions of law are involved in both these appeals, therefore, they are being disposed of by a common judgment.CIMA No. 157/96 and CIMA No. 158/96.

(2.) Brief facts giving rise to these appeals need to be tested.CIMA No. 157/96

(3.) This appeal has arisen from the order passed by the learned Sessions Judge, Jammu in CID No. 17/Arbitration dated 27-4-1996, whereby petition for appointment of an arbitrator has been alleged and as a consequence of this authority of arbitrator who was appointed by respondent during the pendency of the said petition before trial court was revoked and in his place another arbitrator viz. R. V. Ahuja (AVSM) Retd. Chief Engineer, A-2/53, Azad Apartment, Opp. IIT Gate, Hauz Khas, New Delhi was appointed an arbitrator and matter in dispute was further referred to him for adjudication. Parties had entered into an agreement No. CE (P) Samparak/MD-4/86-87 for the construction of permanent bridge over River Tain at KN 80.50 on Akhnoor-Poonch Road. This work was allotted to the respondent. This work was undertaken by respondent, however, numerous difficulties on account of non-payment as well as lack of decision on the part of department. This resulted in work being not completed even within the extended period of contract. Though fault was on the part of Chief Engineer, Samparak, who instead of admitting the name chose to cancel the contract vide its communication dated 14-6-1993.