AVADH BEHARI ROHATGI, J.

( 1 ) IN this arbitration case the question referred to the Full Bench is one of jurisdiction. Two questions arise on the reference. One whether the Union of India "carries on business" within the meaning of section 20 of the Code of Civil Procedure. Second whether the Delhi Courts have Jurisdiction to entertain an application under sections 14 and 17 of the Arbitration Act against the Union of India not on the ground that the cause of action arose here but solely on the ground that the Union of India has its central seat of power at New Delhi.

( 2 ) THESE are the facts. Gupta Sanitary Stores, petitioner, entered into a contract with the respondent, Union of India, for "improvement of water supply at Joshimath" in 1969-70. There was an arbitration clause in the contract. Disputes arose between the parties. They were referred to the sole arbitration of K. S. Sil, Commander Works Engineer, Bareilly Cantt. He made the award on 31-10-1979. Of the making of the award he gave notice to the parties.

( 3 ) THE petitioner made an application under sections 14 and 17 of the Arbitration Act (registered as Suit No. l358-A of 1979) on the original side of this court pra

Click Here to Read the rest of this document