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2006 Supreme(Mad) 2622

AIR 2007 MADRAS 73
S. RAJESWARAN, J.
M/s. Ennore Port Ltd.
versus
Hindustan Construction Co. Ltd.
A. No. 3481 of 2006
Decided on : 29-9-2006

Advocates appeared:
K. Manoj Menon, for, Petitioner; K. Masilamani, Sr. Counsel for D. Balaraman, for Respondent.

Headnote:

Sec. 27 - Production of Documents - Sec. 27 of the Act 1996 - The Court dismissed the application filed under Sec. 27 of the Act 1996 to direct the CBI to produce the charge-sheet and other documents filed in C.C. No. 26/2003 on the file of the Special Judge for CBI cases before the arbitral tribunal. The Court held that the direction as prayed for cannot be given as the applicant failed to make out a case to exercise the discretion in their favor under Sec. 27 of the Act 1996.

Fact of the Case:

The applicant initiated arbitral proceedings for recovery of a sum of Rs. 12,93,92.982/- against the respondent, based on excess payments made to the respondent on account of connivance and conspiracy by the employees of the Chennai Port Trust, the respondent, and the engineer who certified the payments. The applicant sought to direct the CBI to produce the charge-sheet and other documents filed in C.C. No. 26/2003 before the arbitral tribunal.

Finding of the Court:

The Court dismissed the application, stating that the direction as prayed for cannot be given as the applicant failed to make out a case to exercise the discretion in their favor under Sec. 27 of the Act 1996.

Issues: The main issue was whether the Court should direct the CBI to produce the charge-sheet and other documents filed in C.C. No. 26/2003 before the arbitral tribunal under Sec. 27 of the Act 1996.

Ratio Decidendi: The Court held that the direction as prayed for cannot be given as the applicant failed to make out a case to exercise the discretion in their favor under Sec. 27 of the Act 1996.

Final Decision: The application was dismissed by the Court.

ORDER :- This application has been filed to direct the Superintendent of Police CBI (Anti-corruption Bureau) (CBI, ACB). Third Floor, Shastri Bhavan, Chennai 600006 to produce the charge-sheet together with all the annexures filed in C.C. No. 26/2003 pending on the file of the Special Judge for CBI cases, Chennai to the Chairman of the Arbitral Tribunal. Mr. Jagman Singh at No. 15-B Sector 27-A. Chandigarh-160 019, as per the order of The Arbitrators dated 26-4-2006.

2. The applicant initiated arbitral proceedings for recovery of a sum of Rs. 12,93,92.982/- against the respondent. The brief facts necessitating the filing of the application are as follows :-

3. The predecessor-in-interest of the applicant namely Chennai Port Trust and the respondent herein entered into a Rock Quarrying and Transportation Contract ("FCPP/CA Contract") namely agreement No. 24 dated 6-6-1996 to quarry and transport rock required for construction of the breakwaters at Innore from Karaikkal to the Innore Port Site. Under the said contract the quarried rocks were to be transported by rail from Melpakkam (near Arakkonam) to the Ennore Port Site. As per the terms of the contract rail rakes would be placed at specified times for use by the respondent for transport of rock.

4. It is stated by the applicant that contrary to the terms of the said contract, the engineer under the said contract had certified certain payments and consequently such payments were released to the respondent-contractor by the applicant. Findings that excess payments were made to the respondent an FIR was filed and investigation was carried out by CBI. It is found in the investigation conducted by the CBI that excess payment was made to the contractor-respondent on account of the connivance and conspiracy of the employees of Chennai Port Trust, the respondent-contractor and the engineer who certified the payments and consequently the CBI also filed a criminal complaint in C.C. No. 26/2003 on the file of the learned Special Judge for CBI cases, Chennai. Now charge-sheet has been filed and the case has been posted for further evidence by the prosecution witnesses.

5. The CBI had seized in the course of investigation all the relevant documents in connection with the said contract from the applicants predecessor-in-interest to be produced in support of their case before the Special Judge for CBI. In view of this, the applicant is not in possession of those said documents seized by the CBI. Further since they are also not a party in the proceedings in C.C. No. 26/2003 before the Special Judge for CBI cases, they are also not able to receive the copies of the documents produced by the CBI. The arbitration proceedings have already been initiated by the applicant against the respondent for recovery of excess payments that were fraudulently and wrongly certified for payments.

6. In the course of the arbitral proceedings, the applicant sought for direction from the arbitral tribunal directing the respondent to produce the copies of documents which have been filed by the CBI before the Special Judge for CBI cases, Chennai. On 23-12-2005, the tribunal on the basis of the application filed by the applicant directed the respondent to produce the copies of charge-sheet and other documents filed by the CBI along with the charge-sheet in C.C. No. 26/2003 before the Special Judge for CBI cases. The respondent did not comply with the directions given by the arbitral tribunal for production of documents. Therefore the applicant filed an application before the arbitral tribunal seeking approval of the tribunal to file an application under Sec. 27 of the Act, 1996 before this Court. On 26-4-2006 the arbitral tribunal gave approval to the applicant to file an application before this Court under Sec. 27 of the Act, 1996. Consequently, this application has been filed by the applicant for directing the Superintendent of Police, CBI, to produce the charge-sheet together with all enclosures filed in C.C. No. 26/2

























































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