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1981 Supreme(Del) 140

AVADH BEHARI ROHATGI
ALKARMA – Appellant
Versus
DELHI DEVELOPMENT AUTHORITY – Respondent


Advocates Appeared:
R.K.Khanna, Rajesh Lakhanpal, Raman Lakhanpal, RAMPAL AGARWAL

Judgement Key Points

Key Points: - The court has an overriding power under s. 20(4) to compel the designated authority to appoint an arbitrator and refer disputes, even if the engineer member refuses, thus not destroying the arbitration agreement (!) (!) (!) . - Arbitration can proceed with successive references; Order II Rule 2 CPC does not apply to arbitration, and constructive res judicata does not bar a new reference where disputes were omitted earlier and the engineer member did not respond (!) (!) . - The arbitration clause remains in force; the engineer member’s role is ministerial, and refusal does not terminate or destroy the arbitration agreement; the court can order filing of the agreement and appoint an arbitrator via the designated authority or substitute appointment if necessary (!) (!) (!) (!) . - The court ordered filing of the arbitration agreement and directed the engineer member to appoint an arbitrator within one month to refer disputes to the arbitrator (!) .

How to compel the engineer member to appoint an arbitrator under s. 20(4) of the Arbitration Act, 1940?

What is the effect of a refusal by the engineer member to appoint an arbitrator on the arbitration clause and the arbitration proceedings?

What is the court’s overriding power under s. 20(4) to ensure arbitration when the designated appointing authority declines to act?


AVADH BEHARI ROHATGI, J (ORAL)

( 1 ) THE facts. This case raises a rather interesting point. It arises upon a petition under s. 20 of the Arbitration Act (the Act ). It arises in this way Shri Jai Kishan Das of M|s Alkarma, petitioner, is a contractor. He entered into a contract with the respondent, Delhi Development Authority (DDA) for the execution of work of construction. He was awarded the work of fixing aluminium windows in Vikas Minar, a building where DDA sits. This work was awarded to him in 1973.

( 2 ) THE contractor did the work. While the work was in progress certain disputes arose between the parties. The contract contains an arbitration clause. This is clause 25. It reads :

"except where otherwise provided in the contract all questions and disputes relating to the meaning of the specifications, designs, drawings and instructions hereinbefore mentioned and as to the quality or workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever, in any way arising out of or relating to the contract, design, drawings, specifications, estimates, instruction, orders or these conditions or otherwise concerning the works, or the execu










































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