UNION OF INDIA Vs. SAGARMULL AGARWAL

JUDGEMENT

(1.) THE Union of India represented by the garrison Engineer, New Cantonment, Gangtok has filed this appeal under Section 39 of the Arbitration Act, 1940 challenging the order dated 17-9-03 passed by the Learned District Judge (East and north) Sikkim at Gangtok in Civil Misc. Case (Arbitration) No. 1 of 2003 making the award the rule of the Court.

(2.) THE matter has a chequered career. The appellant invited tender in respect of the work "provision of special repairs to roof, joinery, floor etc. to certain buildings at New cant, and GNR miles 2 at Gangtok". Pursuant to such invitation the respondent submitted his tender, which on being found to be the lowest, was accepted. Contract Agreement No. GE/867/30 of 80-81 was duly executed between the parties. In course of execution of the work, different disputes cropped up which could not be settled. The chief Engineer in letter No. 98038/sma/ arb/30/sz/124/e8 dated 8-4-1997 appointed Lt. Col. P. Sengupta as the sole arbitrator to decide the disputes between the parties. The arbitrator on hearing both the parties and considering the documents filed before him, gave award on 21-10-1999 which was challenged by the appellant in the Court of the District Judge, Special Division, Gangtok. The learned District Judge by order dated 2-2-2002 set aside the award on the ground that the original documents including the contract agreement were not produced by the department before the arbitrator and dipected to appoint fresh arbitrator to decide the claims. Against the said order, the respondent filed Arbitration Appeal No. 2 of 2000 in this Court which was dismissed by order dated 9-5-2000. Being felt aggrieved by the dismissal order, the respondent filed Special Leave Petition (Civil)No. 9264 of 2000 in the Supreme Court. Their Lordships vide order dated 22-3-2002 dismissed the S. L. P. by passing the following order :

(3.) AFTER remand the arbitrator heard the matter afresh and on perusal of relevant documents filed before him gave the award dated 20-12-2002 in favour of the respondent amounting to rs. 15, 19, 182. 17 on fourteen items together with interest thereon. The respondent filed application under Section 17 of the Arbitration Act, 1940 (hereinafter referred to as the Act) praying the learned District Judge to make the award rule of the Court. The appellant on the other hand filed application under Section 33 of the Act to set aside the award. By the impugned order dated 17-9-2003 the learned district Judge has made the award the rule of the Court with further direction that the respondent would be entitled to interest @ 9% per annum on the awarded amount from the date of the award till payment.