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1988 Supreme(Guj) 77

Gujarat High Court
Judgename :D.C.GHEEWALA, N.B.PATEL
GUJARAT WATER SUPPLY AND SEWERAGE BOARD - Appellant
Versus
UNIQUE ELECTORS (GUJARAT) PRIVATE LIMITED - Respondent
C.A. 849 of 1986
Decided On : 04/29/1988

Advocates Appeared: AKSHAY H.MEHTA, N.J.MEHTA

Headnote:

Arbitration Act – Sections 28, 8, 20 – U. P. Act – Section 326 – Limitation Act – Income Tax Act – Finance Act 1972 – Civil Procedure Code – Section 34 – Breach of Contract – The facts leading to the filing of the two Misc. Civil Applications and then to these appeals may first be set out – By two Contracts entered into between the parties the Contractors undertook to provide fabricating laying and jointing 1000 mm. dia steel welded pipeline for a distance of 10. 1 kms. and 7. 4 kms. Respectively – The two Contracts entered into by the parties were in Standard Form B-2 of the P. W. D. and they were contracts – Disputes arose between the parties regarding the execution of the two Contracts each side alleging that the other had committed breach of the Contracts – Held, the following observation quoted from Halsburys Laws of Egland is quite apt in the context and negatives the contention of Shri A. H. Mehta – The observation is: Inaccurate recitals do not affect the validity of the award –In the result of the above discussion therefore we find no substance in the contention of Shri A. H. Mehta that the award is bad on the ground of non-application of mind by the Arbitrator – In view of the observations made in our judgment hereinabove on the question of limitation – Court find it unnecessary to pass any order on Civil Application filed by the Contractors for extension of lime to make and publish the award and the said application is therefore filed without any orders as to costs thereof – At the request of Mr. K H. Baxi for Mr. A. H. Mehta the operation of this order is stayed in order to enable the Board to approach the Supreme Court and obtain appropriate orders – Appeals dismissed

N. B. PATEL, J.

( 1 ) HESE two appeals are directed against the common order dated the 17/06/1986 passed by the learned Civil Judge (S. D.) Ahmedabad (Rural) at Narol whereby he has disposed of Civil Misc. Application No. 231 of 1981 and Misc. Civil Application No. 158 of 1985. By this order the learned Judge has allowed Civil Misc. Application No. 231 of 1981 (filed by the present respondent) by accepting the award made by the Sole Arbitrator regarding the disputes between the parties arising from two Contracts. Misc. Civil Application No 158 of 1985 (filed by the appellant) urging that the award may be set aside has been dismissed by the learned Judge. Thus it is the composite order over-ruling the objections against the award and the coverting of it into the rule of the Court which is the subject-matter of these two appeals filed by the Gujarat Water Supply and Sewerage Board (to be hereinafter referred to as the Board) against M/s. Unique Erectors (Gujarat) Pvt. Ltd. (to be hereinafter referred to as the Contractors ).

( 2 ) ONE of the contentions taken up by the Board against the acceptance of the award was that it was pronounced beyond limitation period and the Contractors have filed Civil Application No. 1508 of 1987 urging that if necessary this Court may grant extension of time to make and publish the award (vide Sec. 28 of the Arbitration Act ). We propose to dispose of both the appeals filed by the Board and also the Civil Application filed by the Contractors by this common judgment.

( 3 ) THE facts leading to the filing of the two Misc. Civil Applications and then to these appeals may first be set out. By two Contracts entered into between the parties the Contractors undertook to provide fabricating laying and jointing 1000 mm. dia steel welded pipeline for a distance of 10. 1 kms. and 7. 4 kms. respectively. The two Contracts entered into by the parties were in Standard Form B-2 of the P. W. D. and they were contracts Nos. B-2/1 and B-2/2 of 1978-79. Disputes arose between the parties regarding the execution of the two Contracts each side alleging that the other had committed breach of the Contracts. The two Contracts under which the work was to be carried out contained an arbitration clause being Clause No. 30 in each Contract. The arbitration clauses in both the Contracts were identically worded. This arbitration clause (Clause No. 30) provided that if any disputes enumerated in any of the sub-clauses (i) to (viii) of Clause 30 arose between the parties the same shall be referred to a Sole Arbitrator. Since disputes did arise between the parties the Contractors filed Misc. Civil Application No. 231 of 1581 under Secs. 8 and 20 of the Arbitration Act in the Court of the learned Civil Judge (S. D.) Ahmedabad (Rural) at Narol for appointment of Arbitrator as per Clause 30 of the Contract and for reference of the disputes to the Arbitrator. Thereupon the Court appointed one Shri G. G. Vaidya as an Arbitrator and by his interim decision dated 5/05/1982 Shri Vaidya decided that the disputes (claims) mentioned in paras 10 (g) to 10 (i) of Civil Misc. Application No. 231 of 1981 were not arbitrable as they did not fall within any of the sub-clauses (i) to (viii) of Clause 30 of the Contracts whereas the rest of the disputes (claims) were arbitrable. The Board challenged this decision of the Arbitrator Shri Vaidya by filing Special Civil Application No. 2750 of 1982 before this High Court but this Special Civil Application was dismissed by this Court by its order dated the 16/03/1983 The Board then took the matter to the Supreme Court against the said decision of this Court by filing Special Petition (Civil) No. 9610 of 1983. While the matter was pending before the Supreme Court the parties submitted consent terms before the Court and the proceedings before the Supreme Court were thereupon disposed of in the same terms by an order dated the 30/01/1984 The Supreme Court set aside the order of the High Court and substituted









































































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