STATE OF BIHAR Vs. GAURANG LAL CHATTERJEE

JUDGEMENT

(1.) Heard, the parties and with their consent this appeal is disposed of under Order 41 Rule 11 of the Code of Civil Procedure. In respect of Agreement No. 3-F 2 of 1983-84 dated 2.6.1983, contract for construction of concrete-cum-boul-der masonery dam on river North Koel at Mandal Palemau, the contractor-respondent raised claim of Rs. 1,66,75,117.00 and filed application under Section 20 of the Arbitration Act, 1940 (hereinafter referred to as 'the Act'), which was registered as Title Suit No. 120 of 1986. The Court appointed Sole Arbitrator, who entered into reference on 8.12.1995 and both parties appeared and participated in the arbitration proceedings, filed their pleadings and adduced evidence and ultimately award of Rs. 1,13,92,300/- was pronounced on 31.10.1997. It was received in Court on 12.11.1997. The appellant-State filed objection dated 15.5.1998 thereto, under Sections 30 and 33 of the Act and by impugned judgment dated 12.5.1999, the said award was made Rule of Court. However, interest granted by Arbitrator @ 14 Wo per annum from 7.4.1989 till date of award was reduced to 9% and the period was extended also from date of award till realisation.

(2.) Mr. S.L. Barnwal, Additional Advocate General on behalf of appellants submitted that time granted by the Court on extension once, for pronouncement of award by 26.8.1997 was never extended under Section 24 of the Act and, therefore, pronouncement of award in question after the said date was without jurisdiction and barred by time.

(3.) It is not denied that before expiry of the extended period, on 4.8.1997, Arbitrator had already sent request to the Court to extend the period, if possible by 6.12.1997 and parties also jointly had filed a petition in Court on 26.8.1997 for extension of time, under Section 24 of the Act. It further appears that on 24.8.1997, arbitration proceeding stood concluded and. therefore, some time was taken for preparation and pronouncement of the award. Extract of Arbitrator's order-sheet dated 24.8.1997 (Annexure-A to the counter affidavit), reveals that arbitration proceeding concluded on 24.8.1997 and on the request of respondent-State, liberty was given to submit/ file case laws, if any, before the Arbitrator by 14.9.1997 with a copy thereof to the claimant. Such liberty was also allowed to the claimant, who may submit case law, if any, by the said date.