1997(10) Supreme 565
SUPREME COURT OF INDIA
(From Orissa High Court)
Sujata V. Manohar & D.P. Wadhwa, JJ.
M/s. Construction India -Appellant
versus
Secretary, Works Department, Government of Orissa & Ors. -Respondents
Civil Appeal No. 858 of 1987
With
C.A. No. 716/91 and CA No. 8829/97
(Arising out of SLP (C) No. 9060/91)
Decided on 10-12-1997
Counsel for the Parties :
For the Appellant : Vinoo Bhagat, Advocate.
For the Respondents : Jayant Das, Sr. Advocate, R.K. Mehta and P.N. Misra, Advocates.
Held : The order of appointment does not qualify this appointment either by prescribing that he can act as an Arbitrator so long as he continues as Chairman of the Orissa Arbitration Tribunal; nor is there any implication to this effect in the sub-Court s order. The reference to arbitration is also not to the Orissa Arbitration Tribunal. This would require three members constituting the Tribunal to sit together. Therefore, it is difficult to hold that the Arbitrator who was named was to act as an Arbitrator only so long as he held the office of the Chairman of the Orissa Arbitration Tribunal. The parties may choose an Arbitrator for various reasons. They may rely on his expertise or his special skills at the time when they choose the Arbitrator. According to the respondents they agreed to the name because there were departmental instructions to refer disputes to the arbitration of any member of the Orissa Arbitration Tribunal. But when the Arbitration is named, unless there is a clear intention spelt out in the agreement of reference to indicate that he would continue to be an Arbitrator only so long as he holds a particular office, a mere reference to the office held by the Arbitrator will not disqualify him from being an Arbitrator after he ceases to hold that office. The arbitrator, therefore, had jurisdiction to give the awards. (Para 6)
Further held : The jurisdiction which is conferred on an Arbitrator is on account of the consent of the parties to the arbitration agreement. Before the Arbitrator, the objection as to jurisdiction of the Arbitrator was withdrawn by the respondents. It shows acquiescence on the part of the respondents in the continued jurisdiction of the Arbitrator to decide the dispute. The minutes recorded show that after raising the objection, the respondents have withdrawn the same. This would indicate a conscious acquiescence on the part of the respondents in the continued jurisdiction of the Arbitrator. (Para 10)
(ii) ARBITRATION AWARD-Validity of-Inadvertent reference to claim items pertaining to claims in other disputes before the Arbitrator between same parties-Cannot be construed as non application of mind by Arbitrator-All three disputes were being heard simultaneously by the Arbitrator-Mistake in recording minutes of one date-Not a ground for setting aside arbitration Award. (Para 12)
JUDGMENT
Mrs. Sujata V. Manohar, J.-Leave granted in S.L.P. (C) No. 9060 of 1991.
2. The appellant in these three appeals had entered into three separate agreements with the respondents relating to a works contract. The arbitration clauses under these three contracts were similar and required a reference being made to the Superintending Engineer of the respondents unconnected with the work. However, as the respondents did not refer the disputes to arbitration, an application was made by the appellant under Section 8 of the Arbitration Act of 1940. The Court passed the following order dated 15.9.1981 on the application by consent of parties from the panel of names given by both parties. Both the panels contained the name of Shri G.S. Patnaik. The order was as follows :
"Both the parties have filed panel of names for appointment of Arbitrator. Heard. Shri G.S. Patnaik, Chairman, Arbitration Tribunal, Orissa, is appointed as sole Arbitrator, send the reference to him."
3. Accordingly, arbitration proceedings were commenced by the Arbitrator. The appellant filed separate statements of case in each of the three cases. The respondents filed their counter claim and/or replies. The parties were heard and the impugned Awards were pronounced by the Arbitrator on 17th of March, 1982.
4. The respondents challenged these Awards on the ground that while the arbitration proceedings were going on, the Arbitrator, on 19th of February, 1982 ceased to be the Chairman of the Orissa Arbitration Tribunal. On 3rd of March, 1982 the respondents filed a petition before the Arbitrator to the effect that since the Arbitrator had ceased to be the Chairman of the Orissa Arbitration Tribunal, he had no jurisdiction to continue with arbitration. The appellant filed his objections to this application. On 9th of March, 1982, the Arbitrator made the following record :
"Claimant and his Advocate present. A.G.P. Bhubaneswar present on behalf of respondent. Heard on the petition on A.G.P. filed earlier and objections of claimant. I have been appointed by name as sole Arbitrator. A.G.P. also does not press his petition any further. Hence, petition is rejected as not pressed. Hearing of the arbitration case stands closed. Orders reserved for pronouncing award. Claimant to file stamp paper."
Thereafter, the Arbitrator pronounced his Award on 17th of March, 1982.
5. It is contended by the respondents that the appointment of the Arbitrator Shri G.S. Patnaik was an appointment by designation and hence he ceased to have jurisdiction when he demited the office of the Chairman, Orissa Arbitration Tribunal. While the appellant contends that the Arbitrator is a named Arbitrator, who is appointed by consent of parties and that he continues to have jurisdiction, although he may have demited his office as the Chairman of the Orissa Arbitration Tribunal. The appellant also relies upon the proceedings before the Arbitrator of 9th of March, 1982 when the objection as to the jurisdiction of the Arbitrator on his demited office was not pressed by the respondents. According to the appellant this will amount to acquiescence by the respondents to the continuation of the arbitration before the named Arbitrator. Since they have so acquiesced, they cannot object to his arbitration.
6. The order of appointment clearly shows that the appointment of Shri G.S. Patnaik, Chairman of the Orissa Arbitration Tribunal, is of a named Arbitrator. The order of appointment does not qualify this appointment either by prescribing that he can act as an Arbitrator so long as he continues as Chairman of the Orissa Arbitration Tribunal; nor is there any implication to this effect in the sub-Court s order. The reference to arbitration is also not to the Orissa Arbitration Tribunal. This would require three members constituting the Tribunal to sit together. Therefore, it is difficult to hold that the Arbitrator who was named was to act as an Arbitrator only so long as he held the office of the Chairman of the Orissa A
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