GAURISHANKAR BHAGWANDASJI DUBEY Vs. M P HOUSING BOARD BHOPAL

JUDGEMENT

(1.) THIS appeal arises out of the order dated 3rd September 1973 passed by the learned sixth Additional District Judge, Indore in C. S. No. 42-B of 1972, whereby an application filed under section 34 of the Arbitration Act for staying the suit was allowed and the suit was consequently stayed.

(2.) THE appellant is a building contractor. Respondent No. 1 the M. P. Housing Board, Bhopal invited tenders to execute the work of external sewer line from S. I. H. S. quarters Nehru Marg, Indore to P. H. E. mains near pancham Ki Phel on Palasia Road Indore. The appellant's tender was accepted by the Housing Commissioner and Secretary M. P. Housing Board, Bhopal, respondent No. 2. The contract to that effect was executed between the parties and signed by the appellant and the Executive Engineer, Housing Board Division, indore. The appellant in pursuance of the said contract started the work.

(3.) THE respondent Nos. 1 and 2 made an application before the trial court under section 34 of the Arbitration Act on the allegation that as per clause 29 of the agreement, the matter be referred to the Housing Commissioner for arbitration and that till then the suit be stayed. The said application was opposed by the appellant on the ground that clause 29 of the agreement did not speak of an arbitration agreement. It was further averred that respondent nos, 1 and 2 had waived the right of reference to arbitration as they did not express any intention to refer the matter to arbitration after receiving, the appellant's notice. The appellant lastly urged, that respondent No. 2, the Housing commissioner being an interested party could not be appointed as an arbitrator.