BHAKRA MANAGEMENT BOARD Vs. S.C. SARIN ETC.

JUDGEMENT

(1.) THIS appeal has been filed by the Bhakra Management Board against the order of Sub -Judge 1st Class, Ludhiana, allowing the application of Respondent No. 1 under Section 20 of the Arbitration Act, 1940, for filing an arbitration agreement and making a reference for the settlement of the disputes between the parties to the arbitration of Superintending Engineer, Transmission Construction Circle No. 1, Punjab State Electricity Board, Patiala, Respondent No. 3.

(2.) ON 18th November, 1965, Respondent No. I, who is a Government contractor, was allotted the work of construction of well type foundations at location No. 233 in Sutlej River Crossing (81 feet deep) of 220 K.V. Bhakra -Ludhiana line by the Superintending Engineer of the then Punjab State Electricity, Board. An agreement was executed between the parties on the usual printed proforma which contained the following arbitration clause:

(3.) NOTHING in the preceding provisions of this section shall be construed as preventing the Government of any of the successor States from constituting at any time on or after the appointed day, a State Electricity Board or a State Warehousing Corporation for that State under the provisions of the Act relating to such Board or Corporation and if such a Board or a Corporation is so constituted in any of the successor States before the dissolution of the Board or the Corporation referred to in Sub -section (1), - -