Objection raised regarding jurisdiction of Court allowed.

Lakshmanan, J.

O.P. No. 531 of 1987 was filed by Sabson (India) Pvt. Ltd., Bangalore against Neyveli Lignite Corporation and Mr. Justice V. V. Raghavan and Mr. M. G. Balasubramaniam (arbitrators) under Sections 14(2) and 17 of the Arbitration Act, 1940 to direct the arbitrators (respondents 2 and 3 above) to file the award in this court and for passing a decree in terms of the award in favour of the petitioner with interest and costs.

2. The matter relates to the arbitration proceedings between the petitioner M/s. Sabson (India) Pvt. Ltd., Bangalore and Neyveli Lignite Corporation regarding certain disputes arising out of the agreement No. CE/TS/II/Civil/24/81-82 for the work of supplying, fabricating and erecting large diameter pipes for their circulating water system Group C for Second Thermal Power Station at Neyveli. Clause 84 of the General Conditions of Contract provides for arbitration which reads as follows :

"Any dispute or difference at any time arising between the parties as to the construction, meaning or effect of this agreement or as to any clause, matter or thing herein contained or as to the rights and liabilities of the parties hereto shall be, if possible settled amicably. However if this is not achieved, contrary to expectations the matter shall be settled in arbitration by two arbitrators one to be appointed by each party, who shall appoint an Umpire before entering upon the reference. The joint decision of the two arbitrators if they are able to agree upon such decision, otherwise the decision of the Umpire shall be final and binding on both the parties hereto. The proceedings of arbitrations shall be in accordance with the provisions of the Indian Arbitration Act, 1940 or any statutory modifications or reenactment thereto or thereof for the time being in force. The venue of arbitration shall be Madras. Service under this Agreement shall notwithstanding the existence of any dispute, controversy or question, continue during arbitration proceedings and no payments due or payable by owner to the contractor shall be withheld on account of such arbitration proceedings, unless such payment is the direct subject matter or one of the subject matter thereof." *

It is stated in Clause 84 that the venue of arbitration shall be at Madras. Accordingly the petitioner and the first respondent each nominated their arbitrators namely Mr. Justice V. V. Raghavan, retired Judge of this Court and Mr. M. G. Balasubramaniam I.A.S. (retired) and the arbitrators entered upon (sic). They also nominated Mr. Justice P. Ramakrishnan, ICS, (retired) as umpire in this matter. The petitioner filed their claim for Rs. 28, 51, 084 under various heads and the first respondent denied the liability and preferred a counter claim. The arbitrators made and signed the award on 24-8-1987 and intimated the parties to the arbitration the making of their award. The intimation was received by the petitioner on 25-8-1987. The arbitrators disallowed the claims under certain heads and passed an award for Rs. 7, 65, 000.26 in favour of the petitioner providing for the payment of interest by the first respondent on the amounts so awarded. The petitioner therefore filed this petition for directing issue of notice to the respondents to file the award in this court and for passing a decree in terms of the award in their favour with interest. Mr. Justice P. K. Sethuraman ordered notice to the respondents 1 to 3 directing them to file award in this court on 7-3-1988. When the matter came before me for hearing on 10-7-1990, I passed the following order. As it has some impact on the outcome of this petition it is reproduced hereunder.

"In view of the Arbitrator filing his award in this court this original petition is ordered accordingly. However, liberty is given to the first respondent Neyveli Lignite Corporation Limited, to take appropriate proceedings in contesting the award already filed in accordance with law. Issue notice of the receipt of the awar