SABYASACHI MUKHARJI, J. - (1.) LEAVE granted and the appeal is disposed of by the following judgment.
(2.) THIS appeal arises out of an order of the High Court of Madras, dated 21st September, 1984. The appellant is the Secretary to the Government, Transport Dept., Madras, and the respondent No. 1 is the managing partner of M/s. National Company, which was the successful tenderer of the work of construction of a bridge across the river Coovum at Koyambedu within the corporation limit of the city of Madras and accordingly the necessary contract was executed between the respondent No. 2 - the Superintending Engineer (Highways) World Bank Project Circle, Madras, and the said Company on 28/04/1979. According to the conditions of the contract between the parties, the work should have been completed on or before 5/11/1980. The said National Company, however, according to the appellant, did not even commence the work till 21-9-1981 and despite extension of time until 31-10-1981 the said firm failed and neglected even to commence the job. Consequently, the contract in favour of the said firm was determined absolutely at their risk and cost, according to the appellant. The respondent herein, in his individual capacity as managing partner of the said Company filed a suit in the City Civil Court, Madras, being O.S. No. 3996/82 claiming damages alleged to have been caused as a result of the said determination of the said contract and for refund of earnest money deposit etc.
(3.) IN view of the Arbitration Clause under the agreement between the parties, the appellant filed a petition for referring the dispute to the arbitrator for further proceedings and the City Civil Court, Madras, accepting the appellant's prayer, passed orders directing both the parties to refer the disputes to the arbitrator, and stayed the suit. As per the order of the City Civil Court, Madras, the respondent filed claim petition before the arbitrator, namely, Superintending Engineer (Highways and Rural Works), Rural Roads Circle, Tiruchirapalli, being the second respondent herein.;