STATE OF RAJASTHAN Vs. SHARMA AND CO

JUDGEMENT

(1.) THIS appeal under Section 39 of the Arbitration Act (No. X of 1940) (hereinafter referred to as 'the Act') is directed against the judgment and decree dated June 6, 1970 passed by the District Judge, Sri Ganganagar.

(2.) THE material facts, necessary for the disposal of this appeal, are these: THE respondent (M/s. Sharma & Co.) entered into an agreement with the appellant (the State of Rajasthan) on December 17, 1961 for supply of forty lacs of Pacca bricks to the Irrigation Department of the Government of Rajasthan. According to Clause 21 of the Agreement, all disputes arising between the parties in connection with the contract were required to be referred for arbitration to the Superintending Engineer of the Irrigation as may be nominated by the Government. THE respondent (contractor) completed the supply by July 26, 1962 and a final bill was prepared on December 25, 1962. THE respondent, inter alia, raised a claim for the payment of costs of 1,12,152 bricks and the concerned Department disputed the same. On April 15, 1967, an application under Section 8 of the Act was submitted by the respondent before the learned Senior Civil Judge, Sri Ganga-nagar. THE case was registered as Civil Misc. Application No. 1 of 1967. THE learned Senior Civil Judge, by his order dated July 11, 1967 appointed Shri R.L. Malhotra, retired Superintending Engineer as the sole Arbitrator to decide the dispute between both the parties. THE relevant portion of the order dated July 11, 1967 is as under:

(3.) A perusal of the order (letter) dated July 22, 1967 shows that reference was made to Shri R.L. Malhotra by the Senior Civil Judge, Sri Ganganagar in pursuance of the order dated July 11, 1967, by which, he was appointed to arbitrate on the disputes between the parties. In the award dated June 19, 1969, the Arbitrator has mentioned that a request was made to him to act as an Arbitrator in the matter by the Senior Civil Judge, Sri Ganganagar under his order dated July 11, 1967, conveyed to him vide letter dated July 22, 1967. As the Arbitrator could not make the award within a period of four months, he applied for extension of time limit on October 19, 1968 and the extension of four months for making the award was granted to him by the District Judge, Sri Ganganagar vide order dated February 24, 1969. It is, therefore, clear that after the appointment of the Arbitrator under Section 8 (2) of the Act, reference was not made to the Arbitrator by the parties.