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1996 Supreme(MP) 148

1996 JLJ 345
S.K. Dubey and Shambhoo Singh, JJ.
S.P. Gupta v. State of M.P. & another
C. Revn. No. 34 of 1991; against the award passed by M.P. Arbitration
Tribunal, Bhopal, in Reference Case No. 108 of 1989; Decided on 2.2.1996.

Advocates:
V.R. Rao for applicant; Alok Aradhe, Panel Lawyer for State.

Headnote:(1) Arbitration Act, 1940 -- S. 2 (a) (b) and (e) -- agreement containing arbitration clause -- reference made thereunder and decided by named arbitrator -- such order is an award as defined under S. 2 (b).

       Section 2 (a) of the Act defines ‘arbitration agreement‘ means a written agreement to submit present or future differences to arbitration, whether an arbitrator is named therein or not. Section 2 (b) of the Act defines ‘award‘ means an arbitration award" Section 2 (e) defines ‘reference‘ means a reference to arbitration. The use of the word ‘reference‘ in clause 29 (2) of the agreement denotes that matters in dispute be referred for arbitration to the named arbitrator, that is, the Chief Engineer, hence when a dispute arises between the parties to the agreement clause 29 (2) provides a mechinery to decide the matter in dispute by making reference. Therefore, clause 29 (2) in substance clearly and distinctly is arbitration clause by reference to the Chief Engineer and that would be, in our opinion, correct interpretation of the clause 29 (2). AIR 1980 SC 1522, AIR 1966 Pun. 436 and AIR 1961 J and K 58 relied on. [Para 6

       True, the expression ‘award‘ is neither mentioned in clause 29 (2) nor in the reasoned judgment rendered by the Chief Engineer, but that would not make any difference as the award also means official decision to award something on matters in dispute. [Para 7

       (2) Madhyastham Adhikaran Adhiniyam, 1983 (M.P.) -- Ss. 20 (2) and 7-A -- arbitration proceedings pending before commencement of the Act -- such proceedings are saved under S. 20 (2) -- after award in such proceedings -- forum having jurisdiction should be approachad -- second arbitration proceeding cannot be filed before tribunal under S. 7-A. [Para 8

       (3) Jurisdiction -- cannot be conferred by consent of parties -- jurisdictional competence not objected -- Court or Tribunal concerned can suo motu examine such point. 1994 JLJ 412 (SC) followed. [Para 9

       ¼1½ ek/;LFke~ vf/kfu;e] 1940 & /kkjk 2 ¼d½ ¼[k½ rFkk ¼M-½ & djkj esa ek/;LFke~ [kaM varfoZ"V & rn/khu funsZ‘k fd;k x;k vkSj ukfer e/;LFk }kjk fofuf‘pr & ,slk vkns‘k /kkjk 2 ¼[k½ ds v/khu ;Fkk ifjHkkf"kr iapkV gSA

       vf/kfu;e dh /kkjk 2¼d½ esa ifjHkkf"kr gS fd ^^ek/;LFke~ djkj* ls orZeku ;k Hkkoh fooknksa dks ek/;LFke~ ds fy, fuosfnr djus dk fyf[kr djkj vfHkys[k gS] pkgs mlesa dksbZ e/;LFk ukfer gks ;k u gksA /kkjk 2 ¼[k½ esa ifjHkkf"kr gS fd ^^iapkV** ls ek/;LFke~ iapkV** vfHkçsr gSA /kkjk 2 ¼M-½ esa ifjHkkf"kr gS fd ^^funsZ‘k** ls ek/;LFke ds fy, funsZ‘k vfHkçsr gSA djkj ds [kaM 29¼2½ esa ç;qDr ‘‘kCn ^^funsZ‘k** ls |ksfrr gS fd fooknxzLr fo"k; ukfer e/;LFk vFkkZr~ eq[; vfHk;ark dks fufnZ"V fd;k tk,xkA vr% tc djkj ds ckjs esa i{kdkjksa ds e/; dksbZ fookn mn~Hkwr gksrk gS] fooknxzLr fo"k; dk funsZ‘k djds fofuf‘pr djus dk ra= djkj ds [kaM 29 ¼2½ esa micaf/kr gSA blfy,] lkjr% [kaM 29 ¼2½ eq[; vfHk;ark ds fy, funsZ‘k }kjk Li"V vkSj lqfHkUu :i ls ek/;LFke~ [kaM gS vkSj gekjh jk; esa ;g [kaM 29 ¼2½ dk lgh fuoZpu gksxkA , vkb vkj 1980 ,l lh 1552] , vkb vkj 1966 iatkc 436 rFkk , vkb vkj 1961 tEew rFkk d‘ehj 58 voyafcrA ¿iSjk 6

       lR; gS fd ‘‘kCn ^^iapkV** dk mYys[ku [kaM 29¼2½ esa vkSj u eq[; vfHk;ark }kjk fn, x, ldkj.k fu.kZ; esa Hkh fd;k x;k gS fdarq mlls dqN varj ugha gksxk D;ksafd iapkV dk vFkZ fooknxzLr fo"k;ksa esa dqN vf/kfu.khZr djus okyk ‘kkldh; fofu‘p; Hkh gSA ¿iSjk 7

       ¼2½ ek/;LFke~ vf/kdj.k vf/kfu;e] 1983 ¼e-ç-½ & /kkjk 20¼2½ rFkk 7&d &ek/;LFke~ dk;Zokgh] vf/kfu;e ds çkjaHk ds iwoZ ls yafcr & ,slh dk;Zokgh /kkjk 20¼2½ ds v/khu O;ko`Ùk gS & ,slh dk;Zokgh esa iapkV ds i‘pkr~ & vf/kdkfjrk laiUu U;k;ky; ds le{k tkuk pkfg, & /kkjk 7&d ds v/khu vf/kdj.k ds le{k nwljh ek/;LFke~ dk;Zokgh Qkby ugha dh tk ldrhA ¿iSjk 8

       ¼3½ vf/kdkfjrk & i{kdkjksa dh lgefr ls çnÙk ugha dh tk ldrh & vf/kdkfjrk dh l{kerk ij vk{ksi ugha & U;k;ky; vFkok vf/kdj.k ,sls ç‘u dk Loçsj.kk ls ijh{k.k dj ldrk gSA 1994 ts ,y ts 412 ¼mPpre U;k-½ vuqlfjrA

       ¿iSjk 9

ORDER


S.K. Dubey, J.--1. This is a revision under section 19 (1) of the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983 (for short 'the Adhiniyam') by the petitioner-contractor against the award dated 24.9.1990, passed in Reference case No. 108/1989, by Madhya Pradesh Arbitration Tribunal, Bhopal (for short 'the Tribunal').

2. The facts giving rise to this revision petition are thus. The petitioner's tender for the construction of box type bridge with 11 boxes at Barbata Nala in Tahsil Patan, District Jabalpur was accepted on 30.8.1979. Time for completion of the contract was fixed as 12 months excluding rainy season. The work order was issued on 1. 9.1979. The petitioner avers that after the work order, location of the bridge was shifted because of non-acquisition of the land. The bridge in its design was changed wherein on its final approval 11 boxes were reduced to a boxes. The petitioner completed the construction of the bridge as approved in September 1981. On final settlement of bills a dispute arose to certain claims which the petitioner referred under clause 29 of the contract Agreement to the Superintending Engineer who rejected the claim vide decision Ex. P. 28, which was communicated vide Ex. P. 28 dated 6.9.1984. The petitioner aggrieved of the decision preferred an appeal (Ex. P. 39) in terms of clause 29. (2) of the Agreement (Article-A) to the Cheif Engineer. The Chief Engineer entered into the reference and after giving due notice to the respondent/State, on receipt of reply, recorded the evidence of the parties on disputed claims and after appreciating the evidence so adduced and hearing the parties dismissed the dispute so raised by reference in shape of appeal vide Ex. P. 40A/Ex. D. 12 of which the copy was sent to the petitioner vide letter dated 16.1.1987 (Ex. P. 40). After the decision of the Chief Engineer, the petitioner made a reference petition under section 7-A of the Adhiniyam which was contested by the respondents. Though a plea about the entertainability of the reference because of the first arbitration held by the Chief Engineer was not raised, but, the Tribunal on going through the record of the proceedings because the Cheif Engineer and use of the words 'Reference' and appeal and the effect of not writing 'arbitrator' instead of Chief Engineer, after elaborate discussion in paragraphs 11 to 22, recorded a categorical finding that in view of the clause in the Agreement, the petitioner made a reference to the Chief Engineer for arbitration, and for deciding the dispute. The Tribunal dismissed the reference petition holding that as once the arbitration had taken place which was pending prior to the commencement of the Adhiniyam and was saved in view of section 20 (2) of the Adhiniyam, hence, the second reference for arbitration is not maintainable.

3. Shri V.R. Rao, learned counsel for the petitioner contended that mere use of the word 'Reference' in clause 29 (2) of the Agreement which was made against the decision of the Superintending Engineer passed under clause 29 (1) will not make the Reference so made as a statement of claim before the Arbitrator. It was an appeal which was entertained by the Chief Engineer on which he gave his decision. If the Chief Engineer intended to have entered into the Reference, and to have proceeded with the arbitration proceedings, he ought to have proceeded to give an award under section 14 of the Arbitration Act, 1940 (for short 'the Act'). The decision was not filed in Court to make the award as a Rule of the Court. Therefore, the use of the word 'Reference' will not make the proceedings as an arbitration proceedings, in fact it was an appeal which was decided by the Chief Engineer. Hence, there was no bar to approach the Tribunal after the decision of the Chief Engineer.

4. Shri Alok Aradhe, Panel Lawyer for the State supported the award of the Tribunal and took this Court through the record of the proceedings before the Chief Engineer and submitted that if t





























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