- (1.) Leave granted.
(2.) The appellant is a government company being wholly owned by the government of Maharashtra. Respondent 1 M/s Motiram Budharmal is apartnership firm carrying on business as builders and contractors. Respondent 3 is a Chief Engineer of the appellant company.
(3.) On 8/02/1982, the appellant firm issued work order to the first respondent for construction of 'e' type building in Sector 10, Vashi, New Bombay. It was stipulated that the work. should be completed by 7/08/1983. The work was not completed by the first respondent within that date. On 30/06/1984, the work was completed. On 29/06/1987, the first respondent wrote to the appellant's Executive Engineer alleging breach on the part of the appellant. He also put forth various claims. The first respondent inyoked the arbitration clause in the agreement. It was contested by second respondent stating that claims put forth were not arbitrable. Thereafter, the first respondent by a letter dated 15/10/1987 protested and alleged bias against Respondent 3. He also prayed for removal of Respondent 3 as arbitrator. After a gap of nearly 2-1/2 years on 15/05/1990, the first respondent issued notice requesting Respondent 3 to proceed with the arbitration alleging that if this was not done, proceedings for revocation of his authority and/or for his removal would be adopted.;