PRABIR KUMAR MAJUMDAR, J. - (1.) IN or about July 1972 an agreement was entered into by and between the Coal Board and the appellant for protective work of excavation at the Lodna-Bagdigi Collieries. According to the respondent the appellant failed to execute the work in accordance with the terms of the said agreement D/-21st July, 1977 in spite of repeated extensions of time. By reason of the alleged failure of the appellant to execute the work in terms of the said agreement, the said agreement D/-21st July, 1977 was rescinded by the Coal Board on or about 30th July, 1977 and the security deposit furnished by the appellant was forfeited. The Coal Board under Coal Mines (Conservation and Development) Act, 1974 has now been vested in the Union of INdia.
(2.) THE disputes and differences having arisen between the parties, one R.P. Khosla was appointed as the sole arbitrator in terms of the arbitration agreement contained in the said agreement entered into by and between the parties. THE said arbitrator entered into the reference on 2nd May, 1977 and published his award on 22nd April, 1980. THE said award upon being challenged in this Court was set aside by an order of this Court made on 13th Feb. 1981. THEreafter, on an application by the appellant the authority of the said R.P. Khosla was revoked by an order of this Court on 1st Sept., 1981 and Mr. K.J. Sengupta, a retired Judge of this Court was appointed as an arbitrator to adjudicate the disputes arising between the parties under the said agreement D/-21st July, 1977. THE said arbitrator K.J. Sengupta made and published his award on 24th Nov., 1982. The respondent made an application to this Court under Ss.30 and 33 of the Arbitration Act, 1940 challenging the said award of the said arbitrator K.J. Sengupta on several grounds. But at the time of hearing of the said application before the learned Judge of the Court of first instance the respondent pressed only on one ground that the said arbitrator had exceeded his jurisdiction in awarding interim interest on and from May 2, 1977. It was contended on behalf of the respondent in the Court of the first instance that the reference before the said R.P. Khosla came to an end with the making of his award on April 22, 1980. After said award was set aside on Feb. 13, 1981, according to the respondent, a new reference started before the said arbitrator K.J. Sengupta. Therefore, as contended by the respondent, the new arbitrator had no jurisdiction to award interim interest for the period of pendency of the first reference before the said arbitrator R.P. Khosla from May 2, 1977 to Feb. 13, 1981 and in doing so the new arbitrator had acted without jurisdiction.
(3.) THE learned Judge relying on the decisions reported in AIR 1962 SC 1123 and AIR 1958 Cal 490 held that the reference which started before the said R.P. Khosla remained pending from May 2, 1977 until the award made by the present arbitrator on Nov. 24, 1982.;