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2009 Supreme(SC) 1469

(2009) 16 Supreme Court Cases 705
MARKANDEY KATJU AND A.K. GANGULY, JJ.
BHARAT DRILLING AND FOUNDATION TREATMENT PRIVATE LIMITED - Appellant
Versus
STATE OF JHARKHAND AND OTHERS – Respondents.
Civil Appeals No. 10216 of 2003 with Nos. 10217 and 10214 of 2003
Decided on : August 20, 2009

Advocates who appeared in this case:
P.S. Mishra (NP), Rakesh Dwivedi and S.B. Upadhyay, Senior Advocates (Santosh Mishra, Manoj Kumar and S. Chandra Shekhar, Advocates) for the Appellant;
Ashish Mohan and B.B. Singh, Advocates, for the Respondents.

Headnote:Arbitration and conciliation Act, 1996, Sections 34 and 37 - Award of arbitrator - Interference by Court - Scope of interference - Award reasoned one - Limited.

       [Paras 7 and 8]

ORDER

1. Heard learned counsel for the parties. These appeals have been filed against the common impugned judgment and order dated 14-7-2003 of the Tharkhand High Court whereby the arbitration appeals filed by the State of Tharkhand have been partly allowed. Since these appeals arise out of the common impugned judgment and order, the same are being disposed of by this common order.

2. The facts in detail have been given in the impugned judgment and order of the High Court and hence we need not repeat the same here. The case relates to the Arbitration and Conciliation Act, 1996. It appears that a there was a dispute between the parties to the contract and the matter was referred to an arbitrator, who gave three different awards since three contracts were involved in the dispute. The said awards are dated 30-9-2000. The said awards were made rule of the court by orders dated 8-1-2002 of the SubJudge, Hazaribagh. Against the said orders dated 8-1-2002 of the Sub-Judge, Hazaribagh, three appeals were filed before the High Court under Section 37 b of the Arbitration and Conciliation Act, 1996 (hereinafter for short referred to as "the Act"), which have been partly allowed by the common impugned judgment and order. Aggrieved against the said judgment, these appeals have been filed by special leave.

3. Shri Rakesh Dwivedi, learned Senior Counsel appearing for the appellant in all these appeals submitted that the High Court has based its c judgment on the reasoning that the claims which were allowed by the arbitrator were barred by the contract Clause 1.21. The relevant sub-clauses thereof are as follows:

"1.21.1. Payments for any additional items of work shall be given by Clause 11 (eleven) of PWD Form F-2 of the contract.

1.21.2. No claim for idle labour, idle machinery, etc. on any account d will be entertained.

1.21.3. No claim shall be entertained for business loss or any such loss.

1.21.4. No claim shall be entertained for delays in communicating decision drawing or specifications by the Department. The Department e may however consider the grant of extension of time in completion of work. If there is any such genuine reason of it.

In case it is not possible for the Department to make the entire site available on the award of the work,-the contractor will have to arrange his working programme accordingly. No claim whatsoever for not giving the site on gradually will be entertained, however, suitable extension of time f may be given at the discretion of the Engineer-in-charge considering the merits of the case."

4. The arbitration clause under the contract between the parties is Clause 1.22.2, which reads as under:

"1.22.2. In case any dispute or difference shall arise between the parties or either of them upon any question relating to the meaning of the 9 specification, design, drawings and instruction or as to the quality of workmanship or materials used on the work or to any question, claim, rights or liabilities of the parties or any other thing whatsoever in any way arising out of or relating to the contract, designs, specifications, estimates, instruction or orders otherwise concerning the work or the execution, failure to execute the same, whether arising during the progress of work or after the completion or abandonment thereof or as to break of this contract, then either party shall forthwith give to the other notice of such dispute or differences and such dispute or differences shall be referred to the Superintending Engineer of the Circle under Clause 23 of F-2 agreement and his decision thereon shall be final, conclusive and binding on all parties. Such reference shall be a reference under the Arbitration Act, 1940."

5. Shri Dwivedi submitted that the bar in Clause 1.21 is only a bar on the Department and not a bar on the arbitrator in respect of the matters mentioned therein. He further submitted that admittedly the Department was not possessed of the land in question nor had funds for the contract while the appellant was ask




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