UNION OF INDIA Vs. JAGJIT SINGH & SONS

JUDGEMENT

(1.) In petition filed under section 20 of the Arbitration Act learned Single Judge of this Court on April 8, 1987 directed Chief Engineer J&K Zone C/o 56 - APO to appoint an arbitrator for adjudicating upon the disputes between the parties in accordance with the terms and conditions of the arbitration agreement executed between them and the Chief Engineer on June 27, 1987 appointed Shri J. S Katoch, Superintending Engineer as the sole arbitrator for the above said purpose requiring him to submit award to the Court within the statutory period of four months. The respondents herein -then applied to the Court by filing a petition, No. 21 of 1990, for removal of the arbitrator and appointment of independent arbitrator in his place. Learned Single Judge after obtaining objections from the appellant herein and hearing the parties set aside the appointment of Shri J. S. Katoch arbitrator and in his place appointed Shri H. L. Maini retired Chief Engineer, Gandhi Nagar, Jammu vide order passed on Nov. 21, 1990. Aggrieved by that order appellant has filed the present Letters Patent Appeal.

(2.) WE have heard the learned counsel for the appellant and Mr. Gurdeep Singh, respondent. Learned Single Judge while passing the impugned order has taken note of the fact that Shri Katoch never sought any extension of time for filing the award and proceeded with the case for a period exceeding four months and in this manner he did not deal with the matter with reasonable despatch as warranted by law, thereby incurring disqualification to remain as nominated arbitrator.

(3.) MR . Gurdeep Singh representing the respondents argued the case himself and took a preliminary objection that the present appeal was not maintainable in view of the provisions contained in Sec. 39 of the Arbitration Act which deals with appealable orders. Mr. Bhargav, learned counsel for the appellant, however, pleaded that removal of nominated arbitrator was to be treated as superseding of arbitration agreement and in view of sec. 39 (1) (i) of the arbitration Act same is appealable. In support of his argument he has refferred to AIR 1972 Patna 29.