STATE OF RAJASTHAN Vs. PURI CONSTRUCTION COMPANY LIMITED

JUDGEMENT

(1.) Both the parties have appeared through their respective counsel and oral and written submissions besides filing objections and counter-objections to the validity of the impugned award of the joint arbitrators have been made.

(2.) The short facts concerning the arbitration award in question may be stated as follows.

(3.) A contract for the construction of second portion of Mahi Bajaj Sagar Dam, Banswara was given to the respondent Company, Puri Construction (P) Ltd. by the appellant State of Rajasthan in April 1975. Differences and disputes arose between the parties. The respondent contractor invoked the provisions of the arbitration agreement and nominated a retired chief justice of Delhi High court, Mr Justice S. N. Andley as an arbitrator. The appellant State of Rajasthan appointed as its nominee Shri S. Adiappa, a retired Chief Engineer, PWD (Bandr) Rajasthan as an arbitrator. However, the proceedings before the said arbitrators did not continue. The respondent contractor filed a petition under Section 20 of the Arbitration Act before the Delhi High court. Such application was registered as Suit No. 758-A of 1982. By an orderpassed on 9/11/1982 by the Delhi High court, the arbitration agreement between the parties was filed and reference to arbitration was made. The parties thereafter sought for variation of the reference order dated 9/11/1982. Instead of reference to a sole arbitrator, reference was made to two arbitrators namely Shri Manohar Lal being, the nominee of appellant State of Rajasthan and Shri Guru Charan Singh being the nominee of the respondent contractor. The State of Rajasthan moved the division bench of Delhi High court for stay of arbitration proceedings. The said arbitrators Shri Lal and Shri Singh thereafter resigned. Against the order of the Delhi High court, the appellant, State of Rajasthan filed a special leave petition before this court being Special Leave Petition (Civil) No. 9089 of 1984.