SUPREME COURT OF INDIA
B.C. RAY, M.H. KANIA, K. JAGANNATHA SHETTY, L.M. SHARMA AND J.S. VERMA, JJ.
Goa, Daman & Diu Housing Board, Appellant
Versus
Ramakant V.P. Darvotkar, Respondent.
Civil Appeals Nos. 3236-39 of 1984
Decided on 6-9-1991.
Arbitration Act - Section 34 - Agreement to appoint an arbitrator - Special leave - Unilateral right of terminating contract - Appellant Goa Daman & Diu Housing Board entered into two contracts on and one contract each on with respondent for the construction of tenements at Vasco-da-Gama - Appellant accepted two tenders of respondent on remaining two on - There was a time limit in all the aforesaid four contracts for completion of work referred to therein. Several extensions were granted to the respondent for completing work but the respondent failed to complete construction work undertaken by him under said four contracts - On July appellant issued a notice to respondent under clause of said contract for exercising the right of termination in view of fact that respondent was unable to fulfil contractual obligation of completing construction work in spite of various extensions granted to respondent – Held, There is however nothing to show that Arbitrator misconduct himself or the proceedings in any other manner nor there is anything to show that awards have been improperly procured - There is no allegation far less any finding that Arbitrator was biased or unfair or he has not heard both parties or he has not fairly considered submissions of the parties in making the awards in question - In court opinion it is evident from four awards made by the Arbitrator that the Arbitrator has considered all the specific issues raised by the parties in arbitration proceedings and came to his finding after giving cogent reasons - Above awards cannot under any circumstances be considered to be made by Arbitrator without recording any reasons for the same - Order accordingly.
JUDGMENT
RAY, J.:—The above four appeals on special leave by the appellant were filed against the judgment and order dated February 7, 1983 made by the Panaji Bench of the Bombay High Court in First Civil Appeals Nos. 35/B to 38/ B of 1981 (reported in AIR 1984 Bom 120) disposing of all the four appeals filed by the appellant against the judgment and order of the learned Civil Judge, Senior Division, Panaji, Goa dated 26-8-1981 confirming four different awards by an arbitrator appointed in pursuance to the agreement between the parties. Appeal No. 35 of 1981 relates to the award, awarding to the respondent against the appellant Rs. 2,75,091.13. Appeal No. 36 of 1981 relates to an award, awarding to the respondent a sum of Rs. 1,88,968.36. Appeal No. 37 of 1981 relates to an award, awarding to the respondent Rs. 3,36,230.36 and Appeal No. 38 of 1981 relates to an award, awarding to the respondent Rs. 46,321.32.
2. The facts leading to these appeals are as follows:
The appellant Goa, Daman & Diu Housing Board entered into two contracts on 15-3-72, and one contract each on 11-7-73 and 4-7-73 with the respondent for the construction of tenements at Vasco-da-Gama, Goa. The appellant accepted two tenders of the respondent. on 9-3-72 and remaining two on 24-2-73. There was a time limit in all the aforesaid four contracts for the completion of the work referred to therein. Several extensions were granted to the respondent for completing the work but the respondent failed to complete the construction work undertaken by him under the said four contracts. On July 1, 1975 the appellant issued a notice to the respondent underclause 3 of the said contract for exercising the right of termination in view of the fact that the respondent was unable to fulfil the contractual obligation of completing the construction work in spite of the various extensions granted to the respondent. On July 14, 1975, the Engineer-in-Charge of the appellant Board exercised its unilateral right of terminating the contract under clause 3 of the agreement in view of the fact that the respondent did hot complete the work of construction undertaken by him in spite of various extensions granted to him. On July 31, 1975, the Chairman of the appellant board confirmed that all the four contracts stood rescinded. On May 17, 1976, the respondent served a notice to the appellant on the ground that the appellant had rescinded the work contracts. The respondent stated therein various reasons why the work could not be completed. Thereafter in April, 1978, the appellant filed a suit claiming damages for a sum of Rs. 4,38,786.96 with interest against the respondent in the Court of the Civil Judge, Senior Division, Panaji, Goa, Subsequently , an application was filed by the respondent under section 34 of the Arbitration Act for stay of the suit. Respondent also made another application to the Court under Section 20 of the Arbitration Act for directing the Housing Board to file the arbitration agreement in Court and in pursuance of clause 25 of the agreement to appoint an arbitrator. Accordingly, the Court by its order dated 28-2-1979 had the agreement between the parties filed in court and directed the Housing Board to appoint an arbitrator. On March 25, 1979 Shri J. S. Pinto, retired Superintending Engineer was appointed as Arbitrator.
3. The Arbitrator on March 23, 1981 submitted four awards granting the claims of the respondent as stated hereinbefore on the basis that the appellant was responsible for the slow progress and non-completion of work and the work could not be completed as the contract was terminated by the appellant, the Housing Board. The said award was filed in the Court of Civil Judge, Senior Division, Panaji, by the Arbitrator on 31st March, 1981 for making the award Rule of the Court. The appellant submitted his objections for setting aside the awards on April 27, 1981 on the grounds inter alia that the Arbitrator had misconducted himself by not framing the main is
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