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2014 Supreme(Guj) 800

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
C.L. Soni, J.
State of Gujarat and Ors. - Appellants
Vs.
Shah Enterprise - Respondent
Special Civil Application No. 628 of 2006
Decided On : 01.08.2014

Advocates Appeared:
For Appellant/Petitioner/Plaintiff: P.P. Banaji, A.G.P.
For Respondents/Defendant: B.S. Patel and Chirag B. Patel

Headnote:

Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 - Sections 2(l)(k) and 21 - Bombay Irrigation Act, 1879 - Section 3 - Jurisdiction - Arbitral Award - Challenged - Application filed beyond limitation - Whether maintainable - Sole Arbitrator appointed under the provisions of the Arbitration Act lacked jurisdiction to decide dispute arose between parties to ''works contract'' as provisions of Arbitration Act ceased to apply to such dispute on coming into force of Gujarat Public 'works contracts Disputes Arbitration Tribunal Act, 1992 - Section 21 of Tribunal Act since provides for transfer of all proceedings in connection with ''works contract'' to Tribunal, continuous of arbitration proceedings and making of award under Arbitration Act was without jurisdiction - Held, Section 34(1) itself provides that recourse to a court against an arbitral award may be made only by an application for setting aside such award "in accordance with" sub Section 2 and sub Section 3. Sub Section 2 relates to grounds for setting aside an award and is not relevant for our purposes. But an application filed beyond the period mentioned in Section 34, sub section (3) would not be an application "in accordance with" that sub section. Consequently by virtue of Section 34 (1), recourse to the court against an arbitral award cannot be made beyond the period prescribed - Importance of the period fixed under Section 34 is emphasised by the provisions of Section 36 which provide - Petition dismissed.

JUDGMENT

C.L. Soni, J.

1. In this petition filed under Arts. 226/227 of the Constitution of India, the petitioners have prayed to quash and set aside the award dated 21-5-2000 made by the Sole Arbitrator under the provisions of the Arbitration and Conciliation Act, 1996 ("the Arbitration Act" for short) as well as the order dated 21-10-2005 passed by the learned Presiding Officer, F.T.C. No. 9, Bharuch in Arbitration Execution Petition No. 359 of 2000 ordering the petitioners to deposit Rs. 1,84,35,046/- with interest at the rate of 16% p.a. on the principal amount. I have heard the learned Advocates for the parties. Learned A.G.P. Mr. P.P. Banaji appearing for the petitioners submitted that the learned Sole Arbitrator appointed under the provisions of the Arbitration Act lacked jurisdiction to decide the dispute arose between the parties to the "Works contract" as the provisions of the Arbitration Act ceased to apply to such dispute on coming into force of the Gujarat Public Works Contract Disputes Arbitration Tribunal Act, 1992 ("the Tribunal Act" for short). Mr. Banaji submitted that Sec. 21 of the Tribunal Act since provides for transfer of all proceedings in connection with the "Works contract" to the Tribunal, continuous of arbitration proceedings and making of award under the Arbitration Act was without jurisdiction. Mr. Banaji submitted that since the contract given to the respondent for the work of providing and laying underground pipelines was the "Works contract" within the meaning of Sec. 2(1)(k) of the Tribunal Act, and any dispute arising out of 'Works contract' could be decided only by the Tribunal under the Tribunal Act. The impugned award made by the Sole Arbitrator under the Arbitration Act is thus without jurisdiction and cannot be executed like a decree against the petitioners. Mr. Banaji submitted that the laying of pipelines is part of the canal work and since the works relating to the construction or maintenance of canal is included within the definition of "Works contract", the contract given to the respondent for the work of laying the pipelines would thus fall within the "Works contract", and therefore, only the Tribunal under the Tribunal Act has jurisdiction to decide the dispute arising out of such "Works contract". Mr. Banaji has relied on the definition of canal given in Sec. 3 of the Bombay Irrigation Act, 1879 so as to point out that the canal includes the pipes with other things mentioned therein. Mr. Banaji submitted that the Sole Arbitrator as also the executing Court have failed to properly construe the definition of "Works contract" in the Tribunal Act and thereby have committed serious error of jurisdiction in holding that the contract of laying the pipelines given to the respondent was not the "Works contract". Mr. Banaji submitted that since the award and the order impugned are without jurisdiction and cannot be implemented against the petitioners, it was not required of the petitioners to take recourse to Sec. 34 or 37 of the Arbitration Act against the award made by the learned Sole Arbitrator under the Arbitration Act and the petitioners are entitled to invoke jurisdiction of this Court under Arts. 226/227 of the Constitution of India, especially when it was open to the petitioners to oppose the execution on the ground of lack of jurisdiction with the learned Sole Arbitrator in the present case. Mr. Banaji thus urged to allow the petition and to quash and set aside the impugned award and the order of the executing Court. Mr. Banaji has relied on following judgments:

"(1) In the case of M/s. K. Raheja Development Corporation v. State of Karnataka, reported in, AIR 2005 SC 2350;

(2) In the case of Mrs. Kamini Malhotra v. State of M.P., reported in, AIR 2003 MP 13"

2. As against the above arguments, learned Advocate Mr. B.S. Patel appearing with learned Advocate Mr. Chirag B. Patel for the respondent submitted that the petition under Arts. 226/227 of the Constitution of India to challenge th






















































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