STATE OF RAJASTHAN Vs. SHARMA AND COMPANY

JUDGEMENT

(1.) This is an appeal under Sec. 39 of the Arbitration Act. 1940 (thereinafter referred to as "the Act") against the order of the Additional District Judge Sri Ganganagar referred to set aside the award dated September 15, 1969, made by Shri K.N. Sharma, Chief Engineer, Public Works Department, State of Rajasthan. The facts of the case are that the respondent Messrs. Sharma and Company entered into an agreement with the State of Rajasthan for the construction of Head and Cross Regulator at R.D. 68900 of Rajasthan Canal. This agreement was executed by the respondent on the one hand and by the Executive Engineer, RCP Desert Division. Suratgarh, on behalf of the State of Rajasthan on the other, on March 28, 1962. As per terms of the agreement, the work was to be commenced on February 5, 1962 and completed by June 30, 1962. Extension of lime upto January 19, 1963 was sought for and was granted vide letter dated November 12, 1963 of the Chief Engineer, Rajasthan Canal Project, Jaipur. The work was completed by the respondent within the extended period. Since certain items of claims were not included in the final bill prepared subsequently, the respondent claimed of payment of the omitted items When the claim of the respondent was not accepted by the State of Rajasthan, the former moved an application under Sec. 8 of the Act for appointment of an arbitrator to settle the disputes between the parties Notice of this, application was given to the State of Rajasthan, which opposed the application. The learned Senior Civil Judge, in whose court the application was filed, after hearing the parties allowed the application and appointed Shri R.L. Malhotra, retired Superintending Engineer, Irrigation, Rajasthan, as the sole arbitrator. Aggrieved by this order, the State of Rajasthan went to the High Court in revision. This revision was decided on November 21, 1968, on a joint application presented by the parties. The learned Judge of this Court ordered as under, - -

(2.) The arbitrator informed the Court as well as the parties about the making of the award. He also sent the award to the Court which received it on September 29, 1969. The State of Rajasthan then moved in objection petition purporting to be under Ss. 14 and 17 read with Sec. 30 and 33 of the Act.

(3.) The main objections raised by the State of Rajasthan were firstly, that the agreement entered into between the parties on March 28, 1961 and which contained the arbitration clause, was illegal and unenforceable due to non -compliance of the mandatory provisions of Article 299 of the Constitution of India. Another objection raised on behalf of the State of Rajasthan was that the arbitrator allowed Rs. 11,400/ - without assigning any reasons and without any evidence. Some more objections were raised but they need not be mentioned here, as they were not pressed during course of arguments before me in this appeal.