SHARDA CONSTRUCTION Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) THIS writ application is directed against the order dated 20.8.2004 passed by the learned Chief Justice of this Court in AA Nos. 3 and 5 of 2004 in purported exercise of power under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'said Act ') whereby the application filed by the petitioner for appointment of Arbitrator has been rejected.

(2.) THE facts of the case lie in a narrow compass; The petitioner -firm was allotted three contracts relating to widening of road at National Highway No. 23 at different stages. These works were identified as job Nos. 515, 516 and 538. Petitioner 'scase is that it completed both the works within the stipulated time to the satisfaction of the respondents -authorities, but due to some poor sanctioned specification in the agreement itself, the construction work which was carried out, subsequently became damaged and petitioner was directed to repair the same even after the lapse of liability period and accordingly almost all the repair work was completed. Thereafter dispute between the parties cropped up and since then the respondent - authorities have been trying to shift their liability on the petitioner. The respondents -authorities have made the entire payment for job No. 538 except Rs. 20 lacs which was adjusted against the excess payment for the work relating to job No. 516. The petitioner alleged to have requested the respondents to finalise the entire bills of job Nos. 515 and 516 and close the agreement. It also requested not to make any deduction of any amount from the bills. The respondents having disputed the claim of the petitioner contended that they were entitled to make adjustment as the contractor had breached the agreement.

(3.) THE learned Chief Justice held that there was no valid or legal arbitration clause in the contract entered into by the petitioner and, therefore, there was no question of referring the dispute for arbitration.