ORAL JUDGMENT

1. The present Civil Revision Application is filed by the applicant challenging the order passed by the Gujarat Public Works Contract Disputes Arbitration Tribunal dated 25/04/2007 below Exh. 14 in Civil Application No. 55/2004 in Arbitration Reference No. 53/2005 by which the learned tribunal while condoning the delay in filing the Arbitration Reference has imposed cost of Rs. 25,550/- to the opponent.

2. Shri Dipak Dave, learned advocate appearing on behalf of the applicant has submitted that as such the impugned order passed by the learned tribunal is absolutely arbitrary and no reason has been assigned to impose cost of Rs. 25,550/-, more particularly, when the learned tribunal has specifically observed and found that the applicant has made out a case with sufficient cause for filing the Arbitration Reference after 2555 days. It is further submitted that at the most some reasonable cost could have been imposed by the learned tribunal while condoning the delay. According to Shri Dipak Dave, learned advocate appearing on behalf of the applicant, Rs. 5,000/- can be said to be the reasonable cost to condone the delay and, therefore, it is requested to pass an appropriate order.

3. Shri Amit Patel, learned AGP has tried to support the impugned order passed by the learned tribunal and has submitted that there was a huge delay of 2555 days in preferring the Arbitration Reference and, therefore, the learned tribunal has rightly imposed the cost of Rs. 25,550/- while condoning the delay. Hence, it is requested to dismiss the present Civil Revision Application.

4. Heard the learned advocates appearing on behalf of the respective parties. On considering the impugned order condoning the delay on imposing cost of Rs. 25,550/- , it appears to this Court that no reasons have been assigned by the learned tribunal imposing cost of Rs. 25,550/-, more particularly, when in paragraph 4 of the said order, the learned tribunal has specifically observed that the applicant has made out a case with sufficient cause to condone the delay in filing the Arbitration Reference after 2555 days. If the learned tribunal was of the opinion that the applicant has made out a case with sufficient cause, the learned tribunal is not justified in awarding the cost of such an huge amount. However, on considering the huge delay of 2555 days, even if sufficient cause could have been made out, the learned tribunal ought to have imposed some reasonable cost while condoning the delay. As stated hereinabove, the learned advocate appearing on behalf of the applicant has submitted that an amount of Rs. 5,000/- can be said to be a reasonable cost and even according to this Court also an amount of Rs. 5,000/- can be said to be reasonable.

5. Under the circumstances, the impugned order imposing cost of Rs. 25,550/- cannot be sustained and deserves to be quashed and set aside and the same is required to be modified to the aforesaid extent.

6. For the reasons stated hereinabove, the Civil Revision Application succeeds. The impugned order passed by the learned tribunal dated 25/09/2006 below Exh. .14 in Civil Application No. 55/2005 in Arbitration Reference No. 53/2005 in so far as imposing the cost of Rs. 25,550/- while condoning the delay in preferring the aforesaid Arbitration Reference is hereby quashed and set aside and/or modified to the extent that the applicant shall pay Rs. 5,000/- towards cost of the said application, which the applicant is directed to deposit within a period of four weeks with the learned tribunal and on such a deposit, it will be open for the opponent to withdraw the same and the tribunal is directed to pay the same to the opponent by an account payee cheque. Rule is made absolute accordingly.

(M.R. SHAH, J.)

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