OM METALS AND MINERALS PVT.LTD Vs. STATE OF BIHAR, THROUGH THE.SECRETARY
LAWS(JHAR)-2004-8-43
HIGH COURT OF JHARKHAND
Decided on August 25,2004

Om Metals And Minerals Pvt.Ltd. Appellant
VERSUS
State Of Bihar, Through The.Secretary, Water Resources Department, Patna Respondents

JUDGEMENT

- (1.) THIS miscellaneous appeal arises out of the judgment/order dated 17.1.1996 passed by the sub - or -dinate Judge -I, in Title Suit No. 99 of 1992, whereby and whereunder in a proceeding under Section 20 of the Indian Arbitration Act, 1940 (hereinafter referred to as the Act), he refused to direct the opposite party -State of Bihar to file the Arbitration agreement dated 25.2.1990 in Court and for appointment of an Arbitrator to adjudicate the dispute and differences having arisen in between the parties and to refer the dispute and differences as has been arisen in between the parties to the Arbitrator so appointed on the ground, inter alia, that there were sufficient cause shown by the State of Bihar against non -filing of the award. While passing this order the learned Court below also considered that there were several overwriting, additions. Insertions and interpolations made in the tender documents as also in the agreement and the plaintiff had acted as per the letter of the Superintending Engineer dated 25.2.1990 and consequently the learned trial Court found that the over -writings, additions, insertions and interpolations made in the agreement makes the agreement inoperative.
(2.) UNDISPUTEDLY many other issues were framed and decided. There is no real controversy with regard to other issues but the real controversy was raised in this Court on this point that though there was no sufficient cause shown by the opposite parties, yet the Court found that there was sufficient cause shown by the State of Bihar for not filing the original agreement in the Court. The learned trial Court while deciding the issue No. 7. "Are there overwriting, additions, insertions and interpolations made in the agreement No. 17/89 -90 dated 25.2.1990 which makes the agreement inoperative: ", in paragraph 19 found "that from perusal of the tender document and the agreement it is evident that two sets of bill of quantity for the work of design, manufacturing, supplying, erection, painting and commissioning of gates of Ajoy Barrage were purchased by the plaintiffs company." While going through the impugned judgment, this Court found that the trial Court, while deciding the issue No. 7 framed by it, took into consideration the original and duplicate copy of the Arbitration agreement and on comparing them, Court below found certain interpolation and insertion in the duplicate, but no specific examples were given. The order sheet does into show that the original or the duplicate was filed or even in this case it is not available on record for perusal by this Court. While examining the copy of the tender that was filed, it was apparent on the face of it that the original estimated cost of the project was Rs. 7.4 crores, which was penned through and was made Rs. 8.04 crores. Furthermore, there were penning through with regard to the date of submission of the tender, when the new date was inserted, which prima facie shows that some interpolations had been made, when the existing records were examined. There is one corrigendum issued by the Executive Engineer, which shows that by this corrigendum, the estimated cost of the work was raised to Rs. 8.4 crores and by this corrigendum itself, the date of submission and receipt of the tender was also changed. Therefore, it appears that there were penhing through and the insertion of new dates and the new estimated cost as aforesaid are in conscience of that corrigendum. These by themselves do not constitute a fraud by interpolation. Then a question will arise as to what is the effect of the letter of the Superintending Engineer which was issued on the same date on which the agreement was executed. If that letter is quite against the terms of the contract and the parties are claiming on that or if on the basis of that letter if some interpolation has been made in the original document, which is not signed by both the parties then in that case, a fraud will be apparent on the face of the record.
(3.) NEXT question will be as to from whose possession the duplicate in which the interpolation was alleged to have been made had been produced - whether from the possession of the State or from the possession of the plaintiff. Another question is whether at any relevant time the plaintiff had access to that document so as to make any interpolation therein and another question is as to who whether the plaintiff will be benefited by playing the fraud; if it does not benefit the plaintiff despite interpolation etc. fraudulent intention cannot be read. These aspects are required to be examined which were not answered by the Court below.;


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