- (1.) This appeal is directed against the order of the Delhi High Court wherein the High Court was pleased to allow the appeal of the Union of India.
(2.) The contextual facts depict that pursuant to a contract entered into by and between the appellant and the Union of India, and by reason certain disputes Shri J. D. Chopra was appointed as an Arbitrator on 2-5-1988 to adjudicate the same between the parties during the execution of the contract. Subsequently, mr. Chandwani was appointed in place and stead of Shri J. D. Chopra who was then on deputation and acting as arbitrator in the Ministry of Urban Development, Government of india. Mr. Chandwani, however, passed the award on 5-12-1990 and the award was made the rule of Court on 3-8-93 as on objections have been filed by the Union of India. In the execution proceedings, however, the Union of india has raised objections by filing an application under Section 47 Civil Procedure Code contending that the award dated 5-12-1990 and the decree passed thereon dated 3-8-93 were nullity since shri Chandwani who passed the award had already relinquished his office as arbitrator as on 30-11-1990 in terms of the notification as issued by the Government of India. It has however been contended in support of the appeal that no notification was issued in which chandwani was asked to relinquish the office and to join his duties in the Income Tax Department being his parent department. For convenience sake, the office order dated 20th november, 1990 containing the Ministry's order dated 5th November, 1990 prospectively releasing the Arbitrator with effect from 30th november, 1990 reads as below: "In pursuance of the order issued in this ministry office order No. 150112/50 e. D. dated 5th November, 1990, Sri n. J. Chandwani at present on deputation as arbitrator in this Ministry is released on his duties on the afternoon of 30th November, 1990, with instruction for report for duty, as Member, Appropriate authority, Income Tax Department, calcutta, immediately it has also been decided that in respect of arbitration cases which have been heard and are ripe for giving award Shri Chandwani should give awards within 10 days in respect of cases where such awards cannot be given within 10 days and other cases. Shri Chandwani should resign as arbitrator immediately under intimation to all concerned. "
(3.) The factual score depict that Mr. Chandwani had also given a certificate and that is on record wherein clearly stated that he relinquished his office on 30-11-1990. The arbitration clause in the contract also says that the arbitration shall cease upon the person (who is appointed arbitrator) being transferred or vacating his office.;