Specific statutory provisions prevail over general arbitration clauses in agreements when resolving disputes.

JUDGMENT :

1. Heard Sri B.C. Rai along with Sri Deepak Kumar Pandey, learned counsel for petitioner as well as Sri Manoj Kumar Dwivedi, Advocate holding brief of Sri Narendra Kumar Tiwari, learned counsel for respondent Nos. 2 to 5.

2. The petitioner has approached this Court assailing the judgment and order dated 30.07.1999 passed by Special Judge, EC Act, Muzaffarnagar thereby allowing the application under Section 34 of the Arbitration Act filed by the respondents for relegating the dispute to the Arbitrator.

3. The brief conspectus of the facts is that the petitioner and respondent had entered into an agreement dated 15.02.1985 for supply of electricity for a sanctioned load of 470 KVA. The petitioner is a Papermill which has established its unit at Muzaffarnagar for manufacturing paper.

4. The dispute pertains to the bills raised by the respondent-Electricity Department dated 05.06.1985 and 07.06.1985 amounting to Rs. 41527.60/-and Rs 1,07,605.50/-. In the said bills, it was stated that the meter installed in the premises was defective and was not recording the correct supply of the electricity and hence the said bills were raised. The petitioner disputed the said bills and was of the view that in light of Section 26 (vi) of the Electricity Act, 1910 in case the electric meter was defective, the only remedy as per the Act of 1910 is that the matter has to be referred to an Electrical Inspector who is the only authority under the said Act to return a finding as to whether the meter is defective and only thereafter the bills can be raised by the Electrical Inspector. It was submitted that without following the procedure prescribed, the electricity bills could not have been raised.

5. As the grievance of the petitioner was not redressed and being aggrieved by the aforesaid bills, the petitioner filed a civil suit being Civil Suit No. 288 of 1985 before the Special Judge, EC Act, Muzaffarnagar. Notices were issued to the respondents who had put in appearance before the Civil Court and file their written statements opposing the claim made by the petitioner.

6. Apart from objecting the claim of the petitioner, an application under Section 34 of the Arbitration Act was also made for staying of the proceedings in light of the fact that agreement entered into between the petitioner and respondent, there was specific clause pertaining to deciding of the disputes arising out of the agreement by process of arbitration. Clause 20 of the agreement is as follows:-

"(20) If any question or dispute or difference arises between the parties to this agreement as to the interpretation or effect of any provision or clause herein contained or the construction thereof or as to any other matter in any way connected with or arising out of this agreement of the operation thereof or the rights, duties or liabilities of either party in connection therewith, such question dispute or difference shall be referred to the Arbitrator/Chairman, U.P. State Electricity Board or the person nominated by him and the award/decision of the said arbitrator shall be final and binding upon the parties.

Provided that if the question, disputes or difference relates to or concerned any dues chargeable to the consumer in terms of this agreement, no reference to arbitration shall at the instance of such consumer be made till the consumer has either deposited with the Supplier the amount of dues in dispute of difference or given a Bank Guarantee of such amount in favour of the Supplier valid upto the period on one year form the date in which the award becomes final or the amount or dues in cleared, whichever is earlier."

7. The petitioners had objected to the prayer made by the respondent for referring the matter to the arbitration and specific plea was taken, there exists a specific provision under Electricity Act, 1910 where the dispute which has arisen in the present case was referable to Section 26 (vi) of Act of 1910 and the same should have been referred to the Electrical In