SUPREME COURT OF INDIA
M.N. VENKATACHALIAH AND S.C. AGRAWAL, JJ.
Santosh Singh Arora, Appellant
Versus
Union of India and others, Respondents
Civil Appeals Nos. 10548-10550 of 1983, D/-20-12-1991.
Arbitration Act, 1940 - Sections 5, 8 ,12 , 30 and 33 - Expressed his inability - These agreements contained a provision for arbitration in clause where under all disputes between parties to contract other than those or for which decision of Commander Works Engineer (C.W.E.) or any other person was by contract expressed to be final and binding were required to be referred to sole arbitration of an engineer to be appointed by authority mentioned in tender documents. Certain disputes arose between appellant and the army authorities in relation to the performance of these contracts and the said disputes were referred to arbitration of Lt. Col. who was appointed as arbitrator by the Chief Engineer - Held, Appellant in his consolidated statement of claims has claimed interest and compensation at the rate of per month for years on the ground he was deprived from earning his livelihood by withholding his legitimate payments and has also claimed journey expenses from Canada to India three times as well as expenses in India for months – Court are not inclined to allow these fanciful and exorbitant claims of the appellant - Whatever amount which we consider appropriate has to be awarded towards interest and cost to appellant while prosecuting his remedy has been included by us in sum of two lakhs fifty thousand fixed above and no further amount is payable to him on that score - Order accordingly.
JUDGMENT
S.C. AGRAWAL, J.:- The appellant was an Army Contractor. He entered into three contracts for building construction work with the Army authorities at Dehradun vide Agreements Nos. CWE/ DDN/ 34 dated December 3, 1966, GE/DDN/31 dated November 30, 1967 and CWE/DDN/35 dated December 15, 1967. These agreements contained a provision for arbitration in clause 70 whereunder all disputes between the parties to the contract other than those or for which the decision of the Commander Works Engineer (C.W.E.) or any other person was by the contract expressed to be final and binding, were required to be referred to the sole arbitration of an engineer to be appointed by the authority mentioned in the tender documents. Certain disputes arose between the appellant and the army authorities in relation to the performance of these contracts and the said disputes were referred to the arbitration of Lt. Col. L. K. Raisinghani who was appointed as arbitrator by the Chief Engineer (Northern Zone), Lucknow on December 18, 1968. The said arbitrator gave his awards in relation to those disputes on July 21, 1971. The. appellant, not satisfied with the said award, moved applications under Sections 30 and 33 of the Arbitration Act, 1940 (hereinafter referred to as the Act) for setting aside the said awards. The Additional Civil Judge, Dehradun, by his judgment dated December 10, 1973 set aside the awards made by the arbitrator. The learned Judge however refused to supersede the reference. Thereafter, the Chief Engineer appointed Lt. Col. M. S. Gill as arbitrator but the said arbitrator expressed his inability to act as arbitrator and thereupon Lt. Col. S. K. Gill was appointed as arbitrator by the Chief Engineer. The appellant filed applications under Sections 5, 8 and 12 of the Act in the Court of District Judge, Dehradun wherein he prayed for revocation of the authority of the arbitrator appointed by the Chief Engineer and for appointment of another arbitrator by the Court. The said applications were dismissed by the District Judge, Dehradun by his order dated December 22, 1975. Aggrieved by the said order of the District Judge Dehradun, the appellant filed Civil Revisions Nos. 510, 501 and 511 of 1976 before the Allahabad High Court. The said revisions were dismissed by a learned single Judge of the High Court by judgment dated December 24, 1982. These appeals have been filed by the appellant after obtaining special leave to appeal against the said judgment of the High Court.
2. In its order dated November 23, 1983, this Court, after examining the provision in clause 70 of the General Conditions of the Contract and keeping in view the history of the litigation, expressed the opinion that it was now time to appoint an independent arbitrator who could as well have been appointed by the authority entitled to appoint the arbitrator in the dispute between the parties. By the said order, this Court, in the interest of justice without remitting the matter back to the authority having the right to appoint the arbitrator, with the consent of the parties appointed Shri Justice A. C. Gupta, a retired Judge of this Court, as arbitrator in this matter. Shri Justice A. C. Gupta made his awards dated April 30, 1987 whereby in respect of the outstanding claims of the appellant under all the three contracts, he awarded a total amount of Rs. 65,505 / -. The appellant was, however, not satisfied with the said award and he raised objection against the same on the ground that there was an error apparent on the face of the awards inasmuch as under clause 70 of the General Conditions of the Contract, the arbitrator is required to indicate his finding along with the sum awarded on each individual item of dispute. The said objection was accepted by this Court by order dated October 6, 1987 and the matter was remitted to the learned arbitrator with a direction to make fresh awards in each of the cases. By the said order, the respondents were directed to pay a sum of Rs.
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