FIXOPAN ENGINIRS PRIVATE LIMITED v. UNION OF INDIA
1986-04-21
D.P.WADHWA
body1986
DigiLaw.ai
D. P. Wadhwa ( 1 ) THIS is a petition filed under Section 20 of the Arbitration Act. On notice being issued the respondents filed their replies. Respondents are two in number. Respondents No. 1 is Union of India through The Director General of Supplies and Disposals and respondent No. 2 is State of Kerala through The Executive Engineer Public Health Division, Kottayam. It is submitted by respondent No. 2 that the functions, rights and liabilities of Public Health Division have been taken over by an autonomous body called the Kerela Water and Waste Water Authority. If, that is so the Kerela Water and Waste Water Authority would be taken to have stepped into the shoes of respondent No. 2 Reference to respondents No. 2 would, therefore mean and include the Kerala Water and Waste Water Authority as well. On pleadings of the parties the following issues were framed :- 1. Whether defendant No. 2 is a party to the Arbitration Agreement between the petitioner and respondent No. 1 ? OPP 2. Whether subject disputes are covered in the Arbitration Agreement between the parties or between any two of them ? OPP 3. If issues 1 and 2 are held in favour of the petitioner, whether there is any ground as to why the subject disputes be not referred to the Arbitration ? OPP 4. Relief. It is not disputed that the subject contract was entered into between the petitioner and respondent No. 1 on its behalf as well as on behalf of certain State Governments being the purchasers mentioned in Clause-12 of the schedule of purchasers in the subject contract. Respondent No. 2 if one of such purchasers. This contract contains an arbitration clause it being Clause No. 24 which has been set out fully in the reply filed by respondent No. 2. There could, therefore, be no dispute that this contract was entered into between three parties, i. e. , the petitioner, respondent No. 1 and respondent No. 2 and, therefore, they would be governed by Clause-24 of the contract which constitutes arbitration agreement between the parties. Issue No. 1 is, therefore, decided accordingly. It also could not be disputed that disputes mentioned in para-14 of the petition are covered under the arbitration agreement between the parties.
Issue No. 1 is, therefore, decided accordingly. It also could not be disputed that disputes mentioned in para-14 of the petition are covered under the arbitration agreement between the parties. So are the disputes mentioned in para-14 of the reply of respondent No. 2, which disputes/claims have been raised by respondent No. 2. There is no objection that all the disputes could be referred to arbitrator in terms of the arbitration agreement between the parties. Issue No. 2 is thus decided accordingly. Nothing has been said as to why the disputes could not be referred to arbitrator. Issue No. 3 is, therefore, decided in favour of the petitioner. In view of my decision on issues 1, 2 and 3 the petition has to be allowed. The arbitration agreement is directed to be filed and all the disputes of the parties as mentioned above are referred to sole arbitration in accordance with the arbitration agreement between the parties. The Director General of Supplies and Disposals will appoint the arbitrator within a period of two months who shall enter into the reference and shall give his award in accordance with law. There will be no order as to costs.