Karnataka High Court
Judges : Tirath S.Thakur,Mohan Shantanagoudar
EXECUTIVE ENGINEER - Appellant
Versus
BHARATH ENGINEERING SERVICE TECHNOCRATS AND COMPANY - Respondent
MFA 1466 Of 1998
Decided On : 09/12/2003
Advocates Appeared :
H.MANJU NATH, K.Gopal Hegde
Sections 33, 39(1), 5, 8, 20, 30 and Limitation Act, 1963, Section 5 -Upon a direction of the court, dispute referred to arbitration -arbitrator filing awards before the court -copies served on the parties -appellant/aggrieved party filing application under Section 33 -dismissal of - is there any definite form in which the application for setting aside an award has to be made? No. Whether objections to the award could also be treated as an application to be filed within 30 days? - Delay of 37 days - notice after filing the award -not issued by the court -award served on the Advocate -filing of appeal or objections etc. involving so many administrative procedures -delay understandable-accordingly condoned.
[Tirath S. Thakur & Mohan Shantanagoudar, JJ.] - The making of an application for setting aside of an award whether in the form of the objection statement or in the form of an application is a matter entirely within the volition of the party concerned. Even in the absence of a formal application under Section 33 of the Arbitration Act, if party aggrieved of an award made by the Arbitrator could challenge the same and seek its setting aside by filing objections to the, Award before the Court concerned. It is true that the law of limitation does not make any special concession for State appeals and applications, yet the Court dealing with a prayer for condonation of delay cannot ignore the fact that the decision and the process leading to filing of an appeal or application on behalf of the Government or a Government Agency is rather impersonal and has to go through various stages and hands before it eventually fructifies into action. So long as there is no negligence on the part of those charged with the processing the papers, the request for condonation has to be considered adopting a realistic and liberal approach. There is neglect or dereliction of duty on the part of those concerned with filing of the objections in the instant case so as to decline the condonation of delay. Delay condoned.
( 1 ) THESE appeals arise out of a common Order passed by the II Addl. Civil Judge at Mysore in a. C. s No. 3/91, 4/91 and 62/1991 whereby objections filed by the appellants to the Awards made by the Arbitrator have been rejected as time barred and the Awards made a rule of the Court. In the factual backdrop that we propose to set out hereunder, the appellant shall be referred to as the 'department' and the respondents as 'claimant' for the sake of convenience.
( 2 ) THE Department invited tenders for different items of work in connection with construction of kabini Right Bank Canal. The claimant emerged successful in regard to three items of work which were allotted to him for execution in terms of three separate agreements signed by the parties. These works were to be completed within the time stipulated in the respective agreement, failing which the Department could rescind the contract and have the remainder of the work or works executed through another agency, at the risk and cost of the claimant.
( 3 ) THE claimant could not despite extensions granted to him for the purpose, complete the execution of the works allotted to him within the extended period granted to him for the purpose. The contracts executed between the parties were therefore rescinded by the Department after notice to the claimant and the balance of the work assigned to another agency for completion.
( 4 ) THE broad details of the said works were on the date of termination as under:. Agreement dated 6. 7. 1981: a) Estimated value of the works - Rs. 21,82,722. 00/ b) Works actually executed - Rs. 9,98,681. 00/. Agreement dated 10-07-1981. a) Estimated value of the works - Ps. 15,42,900. 00/ b) Works actually executed - Rs. 7,62,782. 00/. Agreement dated 29- 12-1981: a) Estimated value of the works - Rs. 13,13,485. 00/ b) Works actually executed - Rs. 5,74,448. 00/
( 5 ) IN the year 1990, the Department raised claims for payment of the extra cost incurred by it for the completion of the incomplete work left by the claimant. Aggrieved by the demand raised against him, the claimant filed three different petitions under Sections 8 and 20 of the Arbitration act in connection with the three agreements mentioned above before the Civil Judge at Mysore which were registered as A. C. s No. 2, 3 and 4 of 1991. In the said petitions, the claimant sought a direction for filing the Arbitration Agreement in the Court and for reference of the disputes to the Chief Engineer for adjudication. The said petitions were opposed by the Department inter alia contending that there was no arbitration clause in the agreement executed between the parties, hence no reference to arbitration was permissible. The Civil Judge passed a common order dated 27-7-1993 by which he held that Clause-30 of the Agreement was an arbitration agreement and accordingly referred the disputes raised by the claimant to the Chief Engineer for arbitration. No appeal against the said Order was preferred by the Department with the result that sri Kaliprasad, the then Chief Engineer entered upon the reference but retired from service before he could complete the proceedings. The claimant thereupon filed an application (. A. No. 5) before the Court for an Order permitting Sri Kaliprasad to continue as Arbitrator. The said. A. was dismissed by the Court below by Order dated 4-4-1995. Another. A. was thereafter filed before the Court seeking review of its earlier Order dated 4-4-1995. That application was allowed by the Court below by Order dated 30-11-1995 and Sri Kaliprasad continued as arbitrator.
( 6 ) THE Arbitrator eventually filed three separate Awards before the Court below on 31-5-1996. No specific notice regarding the filing of the Awards was issued by the Reference Court, It is however not in dispute that copies of the Awards were served upon the Government Pleader in the Court below on 3-8-1996 and the matter posted for filing of objections to the Awards to 10-10-1996. O
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