High Court Of Orissa
N. K. Das, J.
NIRANJAN SWAIN - Appellant
Versus
STATE OF ORISSA - Respondent
Civil Revn. 371 Of 1979
Decided On : 01/30/1980
ARBITRATION ACT - SECTION 8 - APPOINTMENT OF ARBITRATOR - JURISDICTION OF COURT - IF NO ARBITRATOR IS APPOINTED WITHIN THE STATUTORY PERIOD OF 15 DAYS, THE COURT HAS JURISDICTION TO APPOINT AN ARBITRATOR.
Fact of the Case:
The petitioner, an 'a' class contractor, had undertaken construction of distribution System of a canal in the district of Phulbani. Disputes arose between the petitioner and the opposite parties. The petitioner requested the Department to settle the disputes and as the opposite parties did not pay any heed to the request of the petitioner, the peitioner communicated with the Chief Engineer to appoint an arbitrator for settlement of the disputes, as provided in the agreement. The Chief Engineer was duly served with a registered notice on 23 1-1979 who received the same on 24-1-1979. Notice was also served on the concerned Executive Engineer, As no arbitrator was appointed within, the prescribed period of fifteen days, the petitioner filed the case in the court of the subordinate Judge, Bhubaneswar for appointment of an arbitrator after expiry of the statutory period.
Finding of the Court:
The court held that if no arbitrator is appointed within the statutory period of 15 days, as provided under Section 8 of the Arbitration Act, the court has jurisdiction to appoint an arbitrator.
Issues: Whether the court has jurisdiction to appoint an arbitrator if no arbitrator is appointed within the statutory period of 15 days.
Ratio Decidendi: The court relied on the provisions of Section 8 of the Arbitration Act and held that a bare analysis of Section 8 of the act clearly indicates that Sub-section (1) authorises a party to the contract containing an arbitration clause to give written notice to concur in the appointment of an arbitrator and if within fifteen clear days after service of notice appointment is not made, the court has power, if moved by the party who gave notice to make an appointment in which event, the appointment shall be deemed to be by common consent.
Final Decision: The court allowed the civil revision and set aside the order of the learned Subordinate Judge. The court directed the learned Subordinate Judge to take steps for appointment of an arbitrator after due notice to the parties.
N. K. DAS, J.
( 1 ) THE petitioner, an 'a' class contractor had undertaken construction of distribution System of a canal in the district of Phulbani. For the said work, he entered into an agreement under the F2 contract. As disputes arose between the petitioner and the opposite parties, the petitioner requested the Department to settle the disputes and as the opposite parties did not pay any heed to the request of the petitioner, the peitioner communicated with the Chief Engineer to appoint an arbitrator for settlement of the disputes, as provided in the agreement. The Chief Engineer was duly served with a registered notice on 23 1-1979 who received the same on 24-1-1979. Notice was also served on the concerned Executive Engineer, As no arbitrator was appointed within, the prescribed period of fifteen days, the petitioner filed the case in the court of the subordinate Judge, Bhubaneswar for appointment of an arbitrator after expiry of the statutory period. A counter was filed by opposite party No. 3, the Executive Engineer, M. I. Division, stating that the Chief Engineer, R. E. O. had already appointed one D. Patra, Superintending Engineer, Planning and Designs, R. E. O. , as arbitrator to decide the disputes and the same was communicated to the petitioner on 15-21979. After hearing both parties, the learned Subordinate Judge held that as the arbitrator had already been appointed by the opposite parties, he did not feel it expedient to cancel the appointment of the arbitrator. Accordingly, he dismissed the application of the petitioner. This revision is directed against the aforesaid order of the learned Subordinate Judge.
( 2 ) THE short point for consideration in this revision is if no arbitrator is appointed within the statutory period of 15 days, as provided under Section 8 of the Arbitration Act, whether the court has jurisdiction to appoint an arbitrator. In the instant case, admittedly no arbitrator was appointed within the statutory period, after service of notice by the petitioner on the opposite parties. After expiry of the statutory period, an intimation was sent to the petitioner stating that an arbitrator was appointed by the opposite parties. It is contended on behalf of the petitioner that as no arbitrator had been appointed within the statutory period, it is for the court to exercise jurisdiction under Section 8 (2) of the Arbitration Act and to appoint an arbitrator. It is apparent from the order of the learned Subordinate Judge that the order is vitiated by misconception of law. The learned Subordinate Judge has not applied his mind to the position of law and has superficially disposed of the petition.
( 3 ) IN the case of Banabehari Das v. Executive Engineer, R. E. Division, Puri (1979) 48 Cut LT 241, it has been held that a bare analysis of Section 8 of the act clearly indicates that Sub-section (1) authorises a party to the contract containing an arbitration clause to give written notice to concur in the appointment of an arbitrator and if within fifteen clear days after service of notice appointment is not made, the court has power, if moved by the party who gave notice to make an appointment in which event, the appointment shall be deemed to be by common consent, From the very nature of the provision in section 8, it must follow that the party who gave notice for appointment of arbitrator has to be communicated, in case an appointment is made, with due haste that the notice has been complied with; otherwise he would be justified in. taking action under Sub-section (2) of Section 8 of the Act. It would, therefore, follow that the notice under Section 8 (1) if complied with has to be communicated with utmost expedition to the notice-giver. If the appointment was not made within the time indicated by law, the petitioner is well within his rights to ask the court to make the appointment of an arbitrator and the Chief engineer would have no jurisdiction to make an appointment and take away the jurisdictio
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