BOKARO STEEL LIMITED Vs. B D KEDIA AND COMPANY

JUDGEMENT

(1.) This is an appeal under Section 39(vi) of the Arbitration Act, 1940 (Act X of 1940) (hereinafter referred to as 'the Act') against the judgment dated the 17th January, 1974, By this judgment, the Subordinate Judge, Second Court, Dnanbad, refused to set aside the award dated 18th November, 1972.

(2.) The claimants, M/s. B.D. Kedia & Co., entered into a contract with Bokaro Steel Limited for construction of 176 units of 'C' type and 408 units of 'E' type houses for a total amount of Rs. 38,81,333/-. Vide Agreement No. BSLCE/Agrt./6/6667 dated 28th March, 1967. Pursuant to the agreement, the claimants completed the work on 18th June, 1968 within time. After the preparation of the final bill, some difference arose between the claimants and Bokaro Steel Limited (hereinafter referred to as "appellant"). The claimants inspected the final bill and found the following discrepancy:

(3.) On 14th September, 1970, the claimants gave notice to the objectors under the arbitration clause of the agreement, requesting the objectors to refer the matter to arbitration. On 26th October, 1970, the dispute between the parties was referred to the arbitration of two arbitrators, namely, Mr. B.G. Baljekar (nominee of the objectors) and Mr. B. Prasad (nominee of the claimants). Both parties filed their pleadings before the arbitrators. The arbitrators, after examining their pleadings, gave the award on 18th November, 1972. The award was received in the Court on 28th November, 1972. Thereafter, the objectors filed an objection under Section 30 of the Act challenging the validity of the award on the ground that the arbitrators have misconducted themselves. The claimants prayed that the Court might pronounce the judgment on the basis of the award.