CHETAN CONSTRUCTION COMPANY Vs. STATE

JUDGEMENT

(1.) THE present writ petition has been filed by the petitioner against the order of the learned Single Judge dated 15. 1. 2004 (Ex. 10) whereby the arbitration application No. 79/2002 preferred by him under section 11 of the Arbitration & Conciliation Act, 1996 (Hereinafter to be referred in short as `the Act of 1996') was dismissed.

(2.) THE legislative intent underlying the Act of 1996, is to minimise the supervisory role of the courts in the arbitral process and nominate/appoint the arbitrator without wasting time, leaving all contentious issues to be urged and agitated before the Arbitral Tribunal itself. Even under the old law, common sense approach alone was commended for being adopted in construing an arbitration clause more to perpetuate the intention of parties to get their disputes resolved through the alternate disputes redressal method of arbitration.

(3.) SHRI R. C. Joshi, counsel for the petitioner contended that once the notice dated 22. 8. 2002 alongwith which a cheque of Rs. 41,634/- enclosed (Ex. 4) was sent through registered A. D. post and was duly received in the office of respondent State by Ex. 11 on 26. 8. 2002 and no communication was received within 30 days from the date of receipt thereof from the office of respondent State thus w. e. f. 26. 9. 2002, the respondents have forfeited their right to refer the matter to the Arbitration Committee under clause 23 of the agreement. The finding of the fact recorded by the learned Single Judge that the cheque was submitted by the petitioner on 28. 8. 2002 is not correct. In support of his contention SHRI Joshi placed reliance on a decision of this court in M/s. Singhal Construction Company, Bharatpur vs. State of Rajasthan (1), submitted that once the respondent has failed to discharge its obligation within a stipulated period of 30 days from the date of receipt of the notice as provided under clause 23 of the agreement, their right to refer the matter to the Arbitrator provided under the agreement stand forfeited. As such the Arbitrator is required to be appointed under section 11 of the Act of 1996.