STATE OF GUJARAT Vs. AMBER BUILDERS
LAWS(SC)-2020-1-18
SUPREME COURT OF INDIA
Decided on January 08,2020

STATE OF GUJARAT Appellant
VERSUS
Amber Builders Respondents

JUDGEMENT

DEEPAK GUPTA,J. - (1.) The main question which arises for decision in these appeals is whether the Gujarat Public Works Contract Disputes Arbitration Tribunal (hereinafter referred to as 'the Tribunal') constituted under Section 3 of the Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 (hereinafter referred to as 'the Gujarat Act') has jurisdiction to make interim orders in terms of Section 17 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the A&C Act').
(2.) At the outset, it may be noted that the Gujarat Act was enacted with a view to compulsorily refer all disputes arising out of "works contract" entered into by the State Government or the Public Sector Undertakings with any other person for those works defined as "works contract" in terms of Section 2 (k) of the Gujarat Act. As far as this case is concerned, it is not disputed that the contract entered into between the appellant State and the respondentcontractor was a "works contract". The contract order pertaining to the parties dated 31.07.2007 contained an arbitration clause, relevant portion of which reads as follows: "Clause : 30(1) Disputes to be referred to Tribunal : The dispute relating to this contract, so far as they relate to of the following matters, whether such disputes arise during the progress of the work of or after the completin or abandoned thereof, shall be referred to the Arbitration Tribunal, Gujarat State..."
(3.) It is not disputed that the Gujarat Act is applicable in the present cases. We are mainly concerned with Clause 43.A of the contract entered into between the parties, which reads as follows: "43.A Any sum of money due and payable to the Contractor (including the security deposit returnable to the contractor) executing any Government work or work of any District Panchayat wholly financed as grantinaid under this contract shall be appropriate by any District Panchayat/Government and shall be set off against any claim of the Government/District Panchayat of Gujarat state by the District Panchayat of Gujarat State/Government for the payment of a sum of money arising out or under any other contract made by the contractor with the Government/District Panchayat of Gujarat State for the work wholly financed as grantinaid by Government of Gujarat State. When no such amount for purpose of the recovery from the contractor against any claim of the Government/District Panchayat of Gujarat state is available, such a recovery shall be made from the contractor as arrears of land revenue." ;


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