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2005 Supreme(MP) 1071

K.K. Lahoti and S.S. Dwivedi, JJ.
Ramla Constructions (M/s.) v. State of M.P. and others
Civil Revision No. 713 of 2003 (J); Decided on 25.10.2005.

Advocates:
V.R. Rao for applicant; Sudesh Verma, Government Advocate for respondent No. 1.

Headnote:Madhyastham Adhikaran Adhiniyam, 1983 (M.P.) -- Ss. 7 and 7-B (2) (as inserted in 1990) -- Limitation Act. 1963 -- Art. 113 -- cause of action to file reference accrued on 31.12.1984 -- S. 7-B inserted on 24.4.1990 providing limitation for one year from insertion n reference made within the period allowed -- reference is within limitation as per S. 7-B(2) -- special provision will prevail -- Limitation Act has no application. [Paras 6 to 8

       ek/;LFke~ vf/kdj.k vf/kfu;e] 1983 ¼e-iz-½& &/kkjk 7 rFkk 7&[k ¼2½ ¼1990 esa ;Fkk var%LFkkfir½& &ifjlhek vf/kfu;e] 1963& &vuq- 113& &funsZ‘k Qkby djus dk okn gsrqd 31-12-1984 dks mnHkwr gqvk& &var%LFkkiu ls ,d o"kZ ds fy, ifjlhek micaf/kr djrs gq, /kkjk 7[k 24-4-1990 dks var%LFkkfir dh xbZ& &vof/k ds Hkhrj fd;k x;k funsZ‘k vuqKkr fd;k x;k& &/kkjk 7[k ¼2½ ds vuqlkj funsZ‘k ifjlhek ds Hkhrj gS& &fo‘ks"k mica/k vfHkHkkoh gksxk& &ifjlhek vf/kfu;e ykxw ughaA ¼iSjk 6 ls 8½

ORDER

1. The applicant has filed this revision under section 19 of M.P. Madhyastham Adhikaran Adhiniyam, 1983 (hereinafter referred as 'the Adhiniyam') assailing the award dated 28.2.2003 passed by M.P. Arbitration Tribunal, Bhopal in Reference Case No. 22/1991 by which the reference application of applicant has been dismissed as barred by time.

2. The facts, in short, of the case are as under: Applicant was awarded a works contract for the construction of Spill Channel of Matiyari Irrigation Project. On 21.11.1981, the work order was issued and the last date of completion of work was 20.11.1982. The work could not be completed and after following process, concerned Executive Engineer rescinded the contract on 30.1.1984. Applicant aggrieved by the order of Executive Engineer made a reference to the Superintending Engineer under clause 3.3.29 of the contract on date 22.3.1984. The Superintending Engineer decided the matter finally on 31.12.1984 and rejected the claim of the applicant. On 31.12.1984 the remedy of the applicant was to approach civil Court under the provision of Arbitration Act, 1940. Though the M.P. Madhyastham Adhikaran Adhiniyam, 1983 (hereinafter referred as 'the Act') was enacted and received the assent of the President on the 7th October, 1983 but because of non-constitution of the Tribunal, the provisions of the aforesaid Act were not enforced. On 1.3.1985, the Tribunal was constituted and the provisions of this Act cal'-e into force. In the Act there was no provision in respect of limitation, though the reference application was entertainable under section 7 of the Act. For the first time by Act No.9 of 1990, w.e.f. 24.4.1990, section 7-B was introduced which provided limitation for filing reference applications. The applicant filed reference application on 23.4.1991 within the time period fixed by subsection (2) of section 7-B of the Act. The Tribunal on raising preliminary objections by the respondents found that the cause of action arose to the applicant on 31.12.1984 and in view of the Art. 113 of the Indian Limitation Act, 1963, the limitation for filing reference application was three years from the date of cause of action and dismissed the reference petition. This order has been assailed by the petitioner on following grounds:

(i) That before the insertion of section 7-B of the Act, no limitation was prescribed for filing reference application. In these circumstances, the Tribunal erred in holding that the reference application ought to have been filed within 3 years from the date of cause of action, which is 31.12.1984.

(ii) Under sub-section (2) of section 7-B of the Act, special limitation has been extended to all the concerned to file reference application who had not filed any reference application before the insertion of section 7-B of the Act. In these circumstances, within the limitation prescribed under sub-section (2) of section 7-B, if the application was filed, the Tribunal erred in holding that the reference application is barred by time.

3. Learned counsel of the State supported the order and submitted that the residuary Art. 113 Indian Limitation Act, 1963 was applicable in this case and the applicant ought to have filed the application within a period of three years from the date when its case was turned down by the Superintending Engineer vide order 31.12.1984 and the applicants who had not approached to the Tribunal after its constitution on 1.3.1985 was not having any right to approach the Tribunal after enactment of section 7-B on 24.4.1990. The order passed by the Tribunal is in accordance with law and suffers no infirmity warranting interference of this Court.

4. To appreciate the rival contention of the parties, it is necessary to look into the relevant provision. Section 7-B is introduced by Act No.9 w.e.f. 24.4.1990 and is reproduced for ready reference:


''7-B. Limitation.-- (1) The Tribunal shall not admit a reference,--

(a) In a case where a de







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