STATE OF RAJASTHAN Vs. BHARAT CONSTRUCTION CO

JUDGEMENT

(1.) All these appeals involve common question of fact and law therefore were heard analogously and are being disposed of by a common judgment.

(2.) Under challenge in these appeals are orders identical dated April 5, 1997 of the learned Distt. Judge Banswara passed in Civil Misc. Cases No. 10/96, 11/96, 12/96. and 13/96 whereby applications of the respondent Company (for short the Company) under Section 9 of the Arbitration and Conciliation Act, 1996 (for short the Act) were allowed and two fold directions were issued with the consent of the parties thus:

(3.) The brief resume of the facts is that the Company submitted for applications in the court of learned District Judge Banswara under Section 9 of the Act praying therein that the State be restrained from effecting the recovery of excess payment made in respect of exacavation of Earth Work to the Company from its Running bills and the letters of recovery issued by the Executive Engineer Mahi Sangwara Canal Division Mahi Project may also be stayed. The State hotly contested the applications. It was averred in the reply that in respect of excess payment to the Company the Executive Engineer requested the Superintendent of Police Dungarpur for making investigation into the matter and to register a criminal case. Thereafter the Company by invoking clause 23 of the Conditions of Contract moved application under Section 11 of the Act for appointment of Arbitrator. It appears from the record that State decided to effect the detailed enquiry in the matter and Shri Diwakar Mahant, Superintendent Engineer was appointed as Enquiry Officer. A committee was also constituted to assist the Enquiry Officer. There-enquiry disclosed that excess payment to the tune of Rs. 180.00 lacs was made to the company. Learned Distt. Judge allowed the applications under Section 11 of the Act and appointed Shri O.P. Yadav, Additional Chief Engineer Irrigation Jodhpur as an Arbitrator. The applications under Section 9 of the Act were also disposed of by the learned District Judge by issuing directions mentioned hereinabove.