UNION OF INDIA Vs. SHAMLAL BHAT

JUDGEMENT

(1.) THIS is an appeal against the order and judgment dated June 9, 1988 passed by learned Single Judge of this court, (M. L. Bhat, J.), in Arbitration Petition No. 138 of 1979.

(2.) THE brief facts leading to the filing of the present appeal that are the respondent held entered into an agreement with the appellant for construction of some accommodation for the Army at Srinagar. Accordingly a contract agreement under No. CETK -1/74 -75 was executed between the parties. The contract agreement was governed and regulated by the general conditions of contract being IAWF -2249 and condition No. 70 of these conditions provided for adjudication of disputes between the parties by reference to arbitration. Because disputes had arisen between the parties those were referred to arbitration and accordingly one Brig. J. M. Rai was appointed as the sole arbitrator by the Engineer -in -Chief Army HQs New Delhi vide his order dated February 10, 1978. After entering upon the reference the arbitrator passed his award on 13.8.1979 and filed the same in this court at its Srinagar wing. After the filing of the award whereas respondent herein, namely M/s. Sham Lal Bhat felt satisfied with the passing of the award and, accordingly, filed an application for making it a rule of the court, appellant Union of India and Chief Engineer Srinagar Zone, filed application for setting aside the award under Section 30, read with Section 33 of the Arbitration Act. It was in the course of the proceedings of the, application filed by the appellants for setting aside the award that a preliminary objection was raised regarding maintainability of these proceedings in Jammu & Kashmir High Court on a very technical point of law. The point of law was accordingly canvassed and urged before the learned Single Judge of this court, (M. L. Bhat, J.) who vide the order impugned dated June 9, 1988 disallowed the preliminary objection raised by the appellants and while doing so directed that further proceedings in the case shall go on. It is against this order that the present appeal has been preferred before us.

(3.) THE point of law canvassed and urged by the appellants before learned Single Judge, which has been negatived by him in the impugned order, was that the arbitration proceedings were as per arbitration agreement, required to be conducted in accordance with the provisions of Arbitration Act, 1940, being Central Act and because there were so conducted, under the provisions of Central Act, the award could not be filed in J&K High Court which had no jurisdiction, in the matter, and on the ground of inherent lack of jurisdiction, further proceedings in J&K High Court could not continue. The sum and substance of the submission was that because the award was passed based on proceedings conducted under Central Act, which Act was not applicable to Jammu and Kashmir State, which had its own Arbitration Act, that award could not be filed in J&K High Court which, thus, has no jurisdiction to make the same rule of the court or pass a decree on the basis thereof. That contention has been repeated before us by Mr. A. V. Gupta, learned Counsel appearing for the appellants.