Gujarat High Court
Judgename :M.S.SHAH, K.M.MEHTA
AJAY S.PATEL, ENGINEERS CONTRACTORS AND CONSULTANTS - Appellant
Versus
STATE OF GUJARAT - Respondent
First Appeal 413 Of 2000
Decided On : 12/22/2007
Civil Suit - Gujarat Public Works Contracts Arbitration tribunal Act, 1992 - Civil Procedure Code - Section 9 - Order 7 Rule 11 - Termination of contract - Suit were for recovery of damages - Application for review of judgment and order by which this court allowed appeal of State government and Executive Engineer and set aside judgment and decree - Ground that jurisdiction of the Civil Court was already excluded by provisions of Gujarat public Works Contracts Disputes arbitration Tribunal Ordinance with simple interest at rate of per annum from date of filing of suit till realization and also to release security deposits in favor of petitioner was deemed to have come into force on date of promulgation of Ordinance - This Court held that Civil Court had no jurisdiction to deal with or decide any question which Arbitration Tribunal established Act was empowered to deal with and decide provisions of Act - Held, Tribunal has no jurisdiction to entertain or decide any dispute relating to a works contract which is agitated in a civil suit and in respect of which no arbitration proceeding was pending - Obviously therefore a Civil Court will have jurisdiction of civil Procedure code to try and decide all disputes relating to any type of contract including a works contract which was pending in Civil Court but in respect of which no arbitration proceeding had been commenced before of Tribunal Act has therefore to be read not in isolation but in context of Tribunal act in order to understand its full implications - Exclusion of jurisdiction of civil Courts is not to be readily inferred - Application allowed (Para 22)
( 1 ) THIS is an application for review of the judgment and order dated 6. 10. 2005 in First appeal No. 413 of 2000 by which this court allowed the appeal of the State government and the Executive Engineer and set aside the judgment and decree dated 30. 10. 1999 of the learned Civil Judge (S. D.), Bharuch in Special Civil Suit No. 253 of 1992 on the ground that the jurisdiction of the Civil Court was already excluded by the provisions of the Gujarat public Works Contracts Disputes arbitration Tribunal Ordinance, 1991.
( 2 ) THE present petitioner is a partnership firm of Engineers, Contractors and consultants. The Executive Engineer, roads and Buildings Division, Bharuch had invited tenders for the work of constructing an office-cum-laboratory building for fishery Department at Bharuch and the tender submitted by the petitioner herein was accepted. As per the agreement between the petitioner and the Executive engineer, the project of construction for rs. 15,61,107/- was entrusted to the petitioner. The project was to commence from 1. 10. 1990 and was to be completed within a period of 12 months. On account of the disputes between the parties, the executive Engineer terminated the contract by letter dated 28. 2. 1992 and the petitioner thereupon filed Special Civil Suit No. 253 of 1992 in the Court of learned Civil Judge (Senior Division) at Bharuch claiming damages to the tune of Rs. 6,91. 987/ -. There is no dispute about the fact that the suit in question was filed on 17. 9. 1992 and that the relief prayed for in the suit were for recovery of damages on the ground of illegal termination of the contract. The prayers were as under :-
"15 (a) pass a decree of Rs. 6,91,987/- in favour of the plaintiff and against the defendants. (b) award interest at the rate of 18 % p. a. from the date of suit till the realization of the decretal amount from the defendants. (c) award costs of this suit from the defendants"
2. 1 The State of Gujarat and the executive Engineer filed their written statement and contested the suit without raising any dispute about the jurisdiction of the Civil Court to entertain and try the suit. Ultimately, by judgment and decree dated 30. 11. 1999, the Civil Court directed the defendants (the respondents herein) to pay a sum of Rs. 5,31,959/- with simple interest at the rate of 15% per annum, from the date of filing of the suit till realization and also to release the security deposits in favour of the petitioner.
( 3 ) BEING aggrieved and dissatisfied by the above judgment and decree, the State of gujarat and the Executive Engineer filed first Appeal No. 413 of 2000. The appeal was admitted for final hearing and when reached final hearing on 6. 10. 2005, it was contended on behalf of the appellants,. e the State of Gujarat and the Executive engineer (opponents herein), inter alia, that the decree was a nullity because on 30. 11. 1999, the Civil Court had no jurisdiction to try the suit. Reliance was placed upon the provisions of the Gujarat public Works Contracts Disputes arbitration Tribunal Ordinance, 1991 which was promulgated on 5. 12. 1991 and the gujarat Public Works Contracts Arbitration tribunal Act, 1992 which received the assent of the President on 23. 3. 1992 and sub-section (1) of the Act was deemed to have come into force on 5. 12. 1991,. e. the date of promulgation of the Ordinance. The other provisions of the Act were to come into force on such date as the State government may, by notification in the official Gazette, appoint. The other provisions came into force on 1. 1. 1994. Relying on the provisions of Section 13 of the Act, this Court held that the Civil Court had no jurisdiction to deal with or decide any question which the Arbitration Tribunal established under the Act was empowered to deal with and decide under the provisions of the Act. This Court accepted the contention urged on behalf of the State government and held that on the date of the decree,. e. 30. 11. 1999, the C
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