P.K. Samanta, J - (1.) This is an application by the Steel Authority of India (SAIL) under Article 227 of the Constitution of India against judgment and order dated 20th April, 2001 passed on it's application under Section 115A of the Civil Procedure Code. The said application under Section 115A was filed against the order dated 20th July, 1999 passed in Misc. Case No. 4 of 1999 by the trial Court. By the said order the trial Court made the award a rule of Court ex parte by allowing the Misc. case which was initiated on the application purportedly made under Section 17 of the Arbitration Act, 1940. The said order was challenged by the SAIL in it's petition under Section 115A of the Code, which was affirmed by the impugned order dated 20th April, 2001.
(2.) In this Court the said order was challenged mainly on two grounds. First, both the Courts below acted illegally and with material irregularity in its exercise of jurisdiction by making the award a rule of Court ex parte as no notice under Section 14 of the Arbitration Act was served upon the parties to the arbitration agreement. Second, the trial Court at Alipore had no territorial jurisdiction to pass a decree in terms of the award inasmuch as the contract between the parties took place at Ranchi, the work was 'required to be done as per the contract at Ranchi and the office of the respondent is also situated at Ranchi.
(3.) Shorn of all unnecessary details, the salient features of this case may be stated as hereunder:- "There was a written contract between the respondent/company and SAIL in which there was a clause that in case of a dispute between the parties, the same shall be referred to arbitrator. There being a dispute, the matter was referred to the sole arbitration of one Sri. v. Ranganathan who after hearing the parties passed an award and also authorised one Sri Avijit Chatteijee of the respondent/company to file the same. By the said award SAIL was directed to refund to the claimant respondent/company the amount of Rs. 26.20 lacs encashed by SAIL out of the bank guarantee furnished for security deposit of similar amount, with further stipulation that the SAIL shall pay an interest @ 13% per annum from the date of issue of award dated 1.12.1997. Such payment shall be made before 20th February, 1998 and after that date interest will be payable at the rate of 18% per annum. The said award was not challenged by SAIL either under Section 30 or under Section 15 of the Arbitration Act. Pursuant to the said award SAIL paid back the amount of Rs. 26.20 lacs but did not pay the interest payable on the said amount as per the award. The respondent/company consequently filed the award in Court for a judgment upon the said award under Section 17 of the said Act. It may be stated herewith that prior to the arbitration of the dispute between the parties by the said sole arbitrator an application under Section 20 of the said act was filed by the respondent/company in Alipore Court for making a reference for arbitration of the dispute between the parties. The said proceeding was not further pursued and the same stood dismissed for non-prosecution inasmuch as the parties had in the meantime referred the dispute to the aforesaid arbitrator." ;