N V CHOWDARY Vs. HINDUSTAN STEEL WORKS CONSTRUCTION LIMITED VISAKHAPATNAM

JUDGEMENT

(1.) THESE two C. M. As. Arise out of a common order and so they will be disposed of by a common judgment.

(2.) THE appellant filed a suit in O. S. No. 150/83 on the file of the Ist Additional Subordinate Judge, Vizag., for permanent injunction and pending the same, he filed I. A. 291/83 for interim injunction restraining the respondent from terminating the contract. THE interim injunction was granted. THEreafter the respondent herein filed two applications I. A. 280/83 for vacating the interim injunction and I. A. 281/83 for stay of trial of the suit under Section 34 of the Arbitration Act. By common order dated 15-7-1983, the injunction was vacated and stay of the trial of the suit was ordered. Hence, the aforesaid two C. M. As.

(3.) THE respondent-Company assessing appallingly slow progress in the work, served the impugned notice dated 7/10-5-1983 under Condition 109 ofo the General Conditions of Contract, which admi9ttedly forms part of the contract agreement, stating that there was no progress in the work to the satisfaction of the Engineer-in-charge and the contract shall be terminated, if the backlog of work is not completed within 7 days from the date of notice, after giving 48 hours notice. It may be stated that after the receipt of the said notice, the appellant by invoking the Arbitration clause under Condition No. 110, sent a letter to the respondent nominated his arbitrator and also asking for nominating its arbitrator. THEreafter, however, on 27-5-1983, he filed the aforesaid suit and Interlocutory Application and obtained interim injunction.