UNION OF INDIA (UOI) Vs. BARRINDER KUMAR SHARMA

JUDGEMENT

(1.) The claimant was awarded contract for supply and stacking of BT materials ( Hard Firewood) between Kilometer 73 to Kilometer 81 on Dhar-Udhampur road by Project Sampark vide Contract bearing No. CDR 13 TF/11/95-96 on 25.05.1995. The contract was for an amount of Rs. 1,22,360 and the work was required to be completed within three phases. After having executed phase I and II of the contract and part of the work of the third phase, no payments were made to the claimant. The payment was withheld on account of recovery, which was sought to be made against the claimant for a different contract bearing No. CDR 13 TF/05/95-96. It was contended that on account of failure on the part of the claimant to complete the work under this contract, recoveries could be made from the subsequent contract.

(2.) Having failed to recover the contract amount, a petition under Section 20 of the Arbitration Act was filed for making reference of the dispute to the Arbitrator before learned Second Additional District Judge, Jammu. Through intervention of the Court the Arbitrator came to be appointed. On entering the reference and after hearing the parties the Arbitrator passed an award, which was subsequently made rule of the Court. Feeling aggrieved, the present appeal has been filed.

(3.) The terms of the reference determines the scope of the controversy which is required to be adjudicated upon. The Arbitrator was, in the present case, called upon to enter into a reference and resolve the dispute between the parties in respect of contract No. CDR 13 TF/11/95-96 on 25.05.1995. Withholding of the amount by the appellants by seeking recovery against the claimant from different contract, was not referred to the Arbitrator. The Arbitrator has clearly reflected in his award that he was called upon to adjudicate upon a dispute which was referred to him by the Court. He could not have adjudicated upon an issue which was not referred to him. He has rightly concluded that the claimant is entitled to receive the amount for the work executed by him.