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1989 Supreme(AP) 491

G.RADHA KRISHNA RAO
State Of A. P. – Appellant
Versus
Balineni Subba Reddy – Respondent


G. RADHAKRISHNA RAO, J.

( 1 ) IN this case a departmental person was appointed as Arbitrator. The agreement provides that an arbitrator from out of the panel of three arbitrators can be appointed. The contractor has approached the Court on the ground that the sole arbitrator is biased. No material is placed before the Court that he is biased. The learned counsel for the respondent- coutractor has relied upon a judgment of this Court reported in V. Raghunadha rao vs. State of A. P. 1 where in it was held :". . . . . . I am inclined to hold that in matters relating to Government contracts, fair procedure is that the disputes shall be referred to an independent arbitrator or panel of arbitrators of "their known integrity". Accordingly I hold that the procedure provided in clause 73 to refer to an arbitrator or a body of official arbitrators, is an unfair procedure offending Article 21 of the Constitution. "but the Supreme Court in The Secretary to the Government vs. Munuswamy mudaliar has taken a contrary view. The Supreme Court observed as follows:"this is a case of removal of a named arbitrator under Sec. 5 of the Act which gives jurisdiction to the Court to revoke the authority of t


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