UNION OF INDIA Vs. GIRDHARI LAL

JUDGEMENT

(1.) The order under challenge in these writ petitions is the decision of the designated authority which has been set aside in another writ petition. For those reasons the decision cannot be sustained in these writ petitions as well. Therefore, the order impugned in these writ petition dated 19-12-1997 is set aside. However, in these two writ petitions a peculiar circumstance has emerged i.e. the arbitrator has not been able to adjudicate regarding the arbitration matter referred to him in relation to Appendix -A because before he could decide the matter interlocutory orders were passed firstly by the designated authority and secondly by this Court restraining the arbitrator from deciding the arbitration matter in relation to Appendix-A.

(2.) Counsel for the petitioners has stated that with the retirement of the officer the mandate of the arbitrator has been terminated, therefore, he cannot now decide the question nor the designated authority has a right to extend the time of arbitration as regards Appendix-A. Therefore, in these matters a new arbitrator shall have to be appointed afresh.

(3.) Counsel for the respondent has submitted that virtually the arbitration was over. This would be evident from the letters issued by the arbitrator. Once the arbitration is over then it is only the formal pronouncement of the order and that should not be stopped. In this relation learned counsel for the respondent has placed reliance on certain documents produced on the record of S. B. Civil Writ Petition No. 660/1998, Union of India v. M/s. Girdhari Lal along with the application under Article 226 of the Constitution of India filed by the respondent as Annexs.-A, B and C. All these documents have been relied upon by the learned counsel for the respondent. Learned counsel for the contractor-respondent has stated that since the arbitration being complete the arbitrator should be permitted to announce the award in relation to Appendix-A and he placed reliance on a decision of the Supreme Court in the matter of M/s. Construction India v. Secretary, Works Department, Government of Orissa, (1997) 10 JT (SC) 220 : AIR 1998 SC 717, wherein it has been held as under :