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2018 Supreme(Guj) 464

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R. SUBHASH REDDY, VIPUL M. PANCHOLI, JJ.
VIJAY CONSTRUCTION CO. CONSULTING ENGINEERS & CONTRACTORS - APPELLANTS
Versus
SARDAR SAROVAR NARMADA NIGAM LIMITED THRO CHAIRMAN/ & ORS. - RESPONDENTS
LETTERS PATENT APPEAL NO. 882 of 2017 In SPECIAL CIVIL APPLICATION NO. 831 of 2013 With CIVIL APPLICATION NO. 7186 of 2017 In LETTERS PATENT APPEAL NO. 882 of 2017
Decided On : 09-02-2018

Advocates Appeared:
For the Appellants : Mr. D.C. Dave, Mr. Chirag K. Sukhwani
For the Respondents: Mr. Kamal Trivedi, Mr. Nirzar S. Desai

Headnote:Clause 15 – Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 (4 of 1992) – Sees. 21, 2(k) & 8(6) – Arbitration and Conciliation Act, 1996 (26 of 1996) – This petition is filed challenging judgment given by single judge on jurisdictional ground – court while confirming said judgment held that only Tribunal has jurisdiction to decide this case which is constituted under Arbitration Tribunal Act, 1992 since present dispute came out of a public works contract.

JUDGMENT :

R. SUBHASH REDDY, J.

1. This Letters Patent Appeal under clause 15 of Letters Patent is filed by the original respondent No. 1 in Special Civil Application No. 831 of 2013 aggrieved by the order dated 26.04.2017 passed by the learned Single Judge. By the aforesaid order, the learned Single Judge has allowed the petition filed by respondent Nos. 1 and 2 original petitioners and quashed and set aside the order dated 30.11.2010 passed in Arbitration Reference No. 16 of 2002 by the Gujarat Public Works Contracts Disputes Arbitration Tribunal, Ahmedabad.

2. Necessary facts, in brief, for disposal of this appeal are as under :

2.1 The contract, which would qualify as works contract, within the meaning of Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 was awarded to the appellant Contractor bearing proceeding No. LCB01/199394 for construction of distributaries and minors for Block No. 3B of Mandwa Branch Canal (earth work, brick lining and structures) to be completed within 36 months from the date of award. Agreement was entered into on 25.05.1993. Contract work came to be completed, but not within time. Contract work came to be completed on 15.06.1999, whereupon the respondents have issued completion certificate. The appellant had preferred Arbitration Reference No. 16 of 2002 before the Gujarat Public Works Contracts Disputes Arbitration Tribunal (for short 'the Tribunal') constituted under Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 (for short 'the Act, 1992') in respect of various claims towards loss, outstanding payment under different heads etc.

2.2 In the said Arbitration Reference No. 16 of 2002, the appellant herein has filed Civil Application No. 13 of 2010 before the Tribunal interalia stating that in view of judgment of the Hon'ble Supreme Court in the case of Va Tech Escher Wyass Flovel Limited v/s. Madhya Pradesh State Electricity Board reported in (2011) 13 SCC 261, such Arbitration Application is not maintainable before the Tribunal. In the aforesaid judgment which was delivered on 14.01.2010 in the case of Va Tech Esher Wyass Flovel Limited (supra), the Hon'ble Supreme Court has ruled that if the contract qualified as works contracts under the Act contain arbitration clause for the purpose of adjudication of disputes in respect of such contract by and between the parties thereto, then in that case, reference of such dispute would not be required to be made to the Arbitration Tribunal constituted under the said Act, but same would be required to made before the Arbitration Tribunal constituted under the provisions of Arbitration and Conciliation Act, 1996 (for short 'the Act, 1996”). When the Civil Application No.13 of 2010 was filed by the appellant herein in view of judgment in the case of Va Tech Esher Wyass Flovel Limited (supra), same was granted and Arbitration Reference No. 16 of 2002 was also disposed of in terms of judgment of the Hon'ble Supreme Court by recording a finding that such reference is not maintainable before the Arbitration Tribunal constituted under the Act of 1992.

2.3 The appellant thereafter preferred Arbitration Petition No. 77 of 2011 under Section 11 of the Act, 1996 for the purpose of appointment of Arbitrator. This Court disposed of the Arbitration Petition on the basis of statement made on behalf of respondent No.1 and 2 stating that one K.G. More is already appointed as arbitrator. In view of above statement, arbitration petition came to be disposed of as not pressed. In view of such appointment, Shri K.G. More, Retired Chief Engineer who was appointed as arbitrator had commenced arbitration proceeding. Meanwhile, the Hon'ble Supreme Court rendered judgment in the case of Madhya Pradesh Rural Road Development Authority and Anr. v/s. L.G. Chaudhary Engineers and Contractors reported in (2012) 3 SCC 495 holding interalia that earlier judgment in the case of Va Tech Esher Wyass Flovel Limited (supra) has been rendered per incuriam, m































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