B. N. Kirpal ( 1 ) THIS is a petition under Section 20 of the Arbitration Act in which the petitioner prays that certain dispute specified in paragraph 14 of the petition should be referred to arbitration. ( 2 ) IT is the common ground that an agreement was entered into between the parties pursuant to which certain works had to be executed by the petitioner. The said agreement contained an arbitration clause which, inter alia. provided that in the event of any dispute arising between the parties, the same shall be referred to arbitration in terms of clause 64 of the General Conditions of Contract. ( 3 ) IT appears that the contract was terminated by the respondents. According to the petitioner this termination was illegal and arbitrary. Vide a letter dated 18th March, 1985 the petitioner invoked the arbitration clause and requested the General Manager, Northern Railway to appoint the arbitrator. The arbitrator not having been appointed, the present petition under section 20 was filed. ( 4 ) IN reply to the petition, the respondents have not disputed the existence of the arbitration clause. It is, however, stated that dispute Nos. 1, 2, 8, 9 and 10 are not referrable to arbitration as per the terms of the agreement. ( 5 ) CLAIM No. 1 contained in paragraph 14 is for Rs, 7. 50 lacs for the work done but not paid till date. Learned counsel for the respondents states that according to the respondents, full amount has been paid to the petitioner as per the measurements which have been carried out. It is true that the measurements which have been recorded in the measurement book are final and cannot be questioned before the arbitrator. Those measurements which are recorded cannot called in question but if the petitioner has not been paid for any work done without questioning the measurements as recorded in the measurement book then the petitioner may be justified in raising a claim to that effect. This claim, like the present, is not one of the excepted items as envisaged by clause 63 of the said contract. In my view, therefore, the aforesaid claim is covered by the arbitration clause subject to this that the measurements recorded in the measurement book cannot be questioned. ( 6 ) THE second claim is of Rs. 1.
This claim, like the present, is not one of the excepted items as envisaged by clause 63 of the said contract. In my view, therefore, the aforesaid claim is covered by the arbitration clause subject to this that the measurements recorded in the measurement book cannot be questioned. ( 6 ) THE second claim is of Rs. 1. 30 lacs being the amount of security deposit which according to the petitioner has not been returned. The counsel for the respondents states that the security deposit has already been paid back and/or adjusted and that nothing is due. This, to my mind, is clearly a dispute which arises between the parties and is one covered by clause 63. It will be for the arbitrator to determine whether Rs. 1. 30 lacs have been returned or adjusted, as claimed by she respondents. This dispute, therefore, may be referrable. ( 7 ) DISPUTE 8 and 9 pertain to loss of profit and loss of advances alleged to have been suffered because of the termination of the contract. Learned counsel for the petitioner fairly concedes that these claims cannot be raised by him in view of the specific provisions of clause 61 of the General Conditions of Contract. ( 8 ) THE last claim to which objection has been raised is claim No. 10 which is for Rs. 50. 000. 00 claimed on account of wastage of material due to the termination of the contract. The said claim is not covered by clause 61 of the General Conditions of Contract as the said claim pertains to the material alleged to have been purchased for use for the contract but which could not be used because of the termination of the contract. This has nothing to do with the claim for profits or loss of advance. It will, of course be for the petitioner to prove that certain material was purchased and that material could not be used or the petitioner has suffered loss in respect thereto because of the termination of the contract. ( 9 ) FOR the aforesaid reasons, the petition is partly allowed and the disputes referred to in paragraph 14 are directed to be referred to arbitration except claims Nos. 8 and 9. The respondents are directed to file the arbitration agreement in Court and refer the aforesaid disputes within eight weeks from today.
( 9 ) FOR the aforesaid reasons, the petition is partly allowed and the disputes referred to in paragraph 14 are directed to be referred to arbitration except claims Nos. 8 and 9. The respondents are directed to file the arbitration agreement in Court and refer the aforesaid disputes within eight weeks from today. There will be no order as to costs.