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1970 Supreme(SC) 70

SUPREME COURT OF INDIA
[BEFORE J.C SHAH AND K. S. HEGDE, JJ,]
R. D. GUPTA
Versus
THE UNION OF INDIA
Civil Appeal No. 1748 of 1969, decided on February 23, 1970

Headnote:

Indian Arbitration Act, 1940 - Section 8(1) (b), 20 and 14(2) - Code of Civil Procedure - Rules 1 and 2 - Order 27 - Contractor - Agreement - Arbitration proceedings - Appellant is a contractor - He entered into a contract with Union of India for carrying out certain works in N. E. F. A - One of clauses in agreement provided that if any dispute arose between parties relating to contract or concerning works done by it, it shall be referred to sole arbitration of Superintending Engineer, N. E. F. A. or to his nominee - At one stage as many as six disputes arose between appellant and Union of India - They were referred to Superintending Engineer, N. E. F. A. who appointed one Mr. O. P. Mittal as his nominee for deciding disputes - Superintending Engineer did not take immediate action on request of appellant - Hence appellant moved Assistant to Deputy Commissioner, to appoint an arbitrator in place - Whether he had jurisdiction or not to proceed with arbitration – Held, application made on behalf of Union of India to set aside award is barred by limitation - As seen earlier, award had been filed in Court and a notice of filing of award was served on Union of India - Petition to set aside award was made - Therefore, prima facie petition was in time having been filed within thirty days from date of service of notice of filing of award - This amounted to a service of a notice under Section 14(2) of Act - Hence petition filed must be held to be barred - It is true that notice under Section 14(2) of Act need not be in writing but Court are unable to accept contention that information given amounts to a notice to Government under Section 14(2) of Arbitration Act - All that was told was that a written notice of filing of the award will be given to Government though he had come to know that award had been filed into Court - Appeal fails and same is dismissed

Judgment

Hegde, J.-The vicissitudes of arbitration proceedings are well illustrated by this case. This is the third time this matter is coming before this Court. Even now the last word on the subject has not been said.

2. The appellant is a contractor. He entered into a contract with the Union of India for carrying out certain works in N. E. F. A. One of the clauses in the agreement provided that if any dispute arose between the parties relating to the contract or concerning works done by it, it shall be referred to the sole arbitration of the Superintending Engineer, N. E. F. A. or to his nominee. At one stage as many as six disputes arose between the appellant and the Union of India. They were referred to the Superintending Engineer, N. E. F. A. who appointed one Mr. O. P. Mittal as his nominee for deciding the disputes. In respect of those disputes, the appellant had claimed a sum of Rs. 2,81,871.67 P. During the course of the proceedings before Mr. Mittal, the Superintending Engineer informed him that since he may have to be examined on behalf of the Union of India, it is advisable for him not to continue as the arbitrator in the matter. Thereafter the appellant called upon the Superintending Engineer to appoint some other person in place of Mr. Mittal. The Superintending Engineer did not take immediate action on the request of the appellant. Hence the appellant moved the Assistant to the Deputy Commissioner, Shillong to appoint an arbitrator in place of Mr. Mittal. In the meanwhile the Superintending Engineer appointed one Mr. Malkhani as the sole arbitrator. He was not acceptable to the appellant. Hence the appellant proceeded with his application before the Assistant to the Deputy Commissioner. That was evidently a proceeding under Section 8(1) (b) of the Indian Arbitration Act, 1940. In that proceeding, the Assistant to the Deputy Commissioner appointed one Mr. Nath as the sole arbitrator in place of Mr. Mittal. Against the order, the Union of India went up inappeal to the Additional Deputy Commissioner, Shillong who by his order, dated November 12, 1962, set aside the order of the Assistant to the Deputy Commissioner and held that the appointment of Mr. Malkhani made by the Superintending Engineer was valid. As against that order, the appellant went up in revision under Section 115, Code of Civil Procedure to the High Court of Assam and Nagaland. One of the points raised in that revision application was that the order made by the Assistant to the Deputy Commissioner being one under Section 8(1) of the Arbitration Act, it was not subject to any appeal and therefore the order of the Appellate Court was without jurisdiction. The High Court accepted that contention and set aside the order of the appellate authority. That order of the High Court was brought up in appeal by special leave to this Court and this Court affirmed the order of the High Court. On January 21, 1962, the Union of India filed another application before the Assistant to the Deputy Commissioner for revoking the authority of Shri Nath but this application was dismissed on March 12, 1962. The Union of India took up the matter in revision before the High Court. The High Court remanded the case by its order, dated July 12, 1962. Thereafter on December 6, 1962, the Union of India withdrew its application On July 9, 1964, the Union of India filed another application before the Assistant to the Deputy Commissioner for revoking the authority of Mr. Nath but that application was dismissed on September 16, 1964. That matter was taken up in revision by the Union of India to the High Court. The said revision application was not pressed as in the meantime Mr. Nath died. On the death of Mr. Nath one Mr. G. N. Dutt was appointed as the sole arbitrator by the Assistant to the Deputy Commissioner. A revision petition was filed by the Union of India against that order but the High Court rejected 1 the same by its order, dated September 1, 1965. This matter was again brough










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