- (1.) THE Court : This application under section 20 of the Arbitration Act, 1940, involves certain interesting points of law regarding appointment of Arbitrators and Umpires in arbitration proceedings and the maintainability of a second application under section 20 of the said Act. In order to appreciate the same, it is necessary to briefly state the facts out of which this application arises.
(2.) ON or about 13th February, 1991, the Chief Engineer, Calcutta Port Trust, issued a Work Order in favour of the petitioner Company for construction and commissioning of a High Level Road Bridge over the existing railway tracks to cater for loading at Hide Road in replacement of the existing steel Trust Bridge and to dismantle and remove the same. Disputes and differences arose between the parties during the execution of the work and the contract was terminated by the respondents on 19th October, 1993. The petitioner thereupon by its letter dated 20th November, 1993, forwarded a consolidated list of its dues and claims to the Chief Engineer, Calcutta Port Trust, the respondent No. 2 herein, for settlement and payment within fifteen days of receipt thereof. According to the petitioner, the respondent No. 2 failed to reply to the said letter or make payment in terms thereof.
(3.) THE petitioner company, thereafter, addressed a letter to the Chairman, Calcutta Port Trust, on 6th December, 1993, requesting him to appoint an Arbitrator within sixty days from the date of receipt of the letter, in keeping with the provisions for reference to arbitration contained in Clause 11B of the Agreement executed between the parties on 23rd February, 1991. THE relevant portion of the said clause reads as follows : "(a) In all disputes . . . . . . . . the decision of the Engineer shall be final and binding on all parties to the contract and shall forthwith be given effect to by the Contractor. (b) If, however, the Contractor is dissatisfied with any such decision of the Engineer he shall within 15 days after receiving notice to such decision require that the matter shall be referred to the Chairman, Calcutta Port Trust, who shall thereupon refer the matter within 60 days from the date of receipt of such notice to an Arbitrator to be appointed from a panel of Arbitrators to be maintained by Calcutta Port Trust for the purpose and any such reference shall be deemed to be submission to arbitration within the meaning of Indian Arbitration Act, 1940, or any statutory modification thereof.";