UNION OF INDIA Vs. NEW INDIA CONSTRUCTORS DELHI

JUDGEMENT

(1.) MESSRS. New India Constructors obtained two contracts for the construction of certain tenements to be made in Delhi. Clause 25 of each of the contracts provided means for the settlement of disputes. Clause 25 ran as follows:

(2.) THE question involved in this case is twofold. Though Section s 5, 8, 11, 12 "and other relevant Section s" of the Arbitration Act were mentioned in the application, the argument proceeded on the interpretation of Section 8 of the Arbitration Act only. That Section s states-

(3.) IN any case even if the Court had the right to make an appointment it did not exercise its discretion wisely in appointing Mr. Pritam Singh Safeer, the appeal is accepted and the order appointing Mr. Pritam Singh Safeer is set aside and Mr. C. P. Malik who has been appointed as the arbitrator is directed to enter upon the reference of parties as expeditiously as possible. There will be no order as to costs of these proceedings whether here or in the Court below. The point involved is of considerable difficulty and there is no direct authority on the point. Khosla, J.