JUDGEMENT
PATHAK,J. -
(1.) These appeals by special leave are directed against an order dated July 6, 1977 of the Orissa High Court and arise out of the proceedings under the Indian Arbitration Act
(2.) The respondent M/s. Allied Construction Company, entered into contracts with the Union of India in the Defence Department undertaking
the construction of residential quarters at Chandipur in the district of
Balasore. Both contracts contained an arbitration clause, Clause 70,
which provided for arbitration in the event of disputes between the
parties
(3.) It appears that after the work had progressed to a certain stage the contracts were terminated at the instance of the respondent. The
respondent invoked Clause 70 of the contract, and requested that the
disputes, which arose out of the termination of the contracts, should be
referred for arbitration. It seems that when no action was taken by the
appellants the respondent made an application under Sections 8 and 20 of
the Arbitration Act in relation to each contract before the learned
Subordinate Judge at Balasore. By his order of December 2, 1976, the
learned Subordinate Judge granted each application, directed the
arbitration agreements be filed in court, and appointed a highly
qualified Engineer, Shri Banabasi Patnaik, as arbitrator. Against the two
orders the respondent filed two respective appeals before the Orissa High
Court. Corresponding revision petitions were also filed in the fear that
the appeals may not be maintainable. Meanwhile, the appellant agreed to
refer the two disputes to arbitration. The High Court dismissed the
appeals and revision petitions by its order of July 6, 1977;
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