UPPER INDIA COUPER PAPER MILLS COMPANY LIMITED v. UNION OF INDIA
1988-12-16
S.N.SAPRA
body1988
DigiLaw.ai
S. N. Sapra ( 1 ) THE present petition has been filed by petitioner under Section 20 of Arbitration Act, 1940 for filing of arbitration agreement in court and to refer the disputes and differences to an arbitrator, to be appointed by this court accordance with the arbitration clause. ( 2 ) NOTICE was issued to respondent to show cause as to why arbitration agreement be not filed in court. Respondent was only served, Respondent has filed written statement. After filing of the written statement, no-body has appeared on behalf of respondent on several hearings. ( 3 ) THE present petition can be disposed off by this order as the parties are not at issue, so far as the petition under Section 20 of Arbitration Act, 1940 is concerned. ( 4 ) THE allegations of petitioner are that in response to the invitation to tender, petitioner submitted its tender for the supply of Cover Manilla paper. The tender was accepted by respondent vide Rate Contract No. POM-9/ RC-paper/0690/packing and Wrapping and Boards/82-83/347/caod dated February 3, 1983 which made form DOS and D-68 (revised), applicable to the contract. The disputes and differences have arisen between the parties and same have been mentioned in para 2 of the petition. According to petitioner, these disputes and differences are covered by the arbitration clause, which is clause 24 of the General Conditions of Contract, i. e. , form DGS and D-68 (revised ). Clause 24 of the General Conditions of Contract reads as under : "in the event of any question, dispute or difference arising under these conditions or any special conditions of contract, or in connection with this contract (except as to any matter the decision of which is specially provided for by these or the special conditions) the same shall be referred to the sole arbitration of an officer in the Ministry of Law, appointed to be the arbitrator by the Director General of Supplies and Disposals. It will be no objection that the arbitrator is a Government servant, that he had to deal with the matters to which the contract relates or that in the course of his duties as a Government Servant he has expressed views on all or any of the matters in dispute or difference. The award of the arbitrator shall be final and binding on the parties to this contract.
The award of the arbitrator shall be final and binding on the parties to this contract. " ( 5 ) IN its written statement, the existence of arbitration agreement has not been disputed by respondent. Certain disputes have been raised on merits. It is not for this court to express any opinion on the merits of the case because the same shall be subject matter before the arbitrator. In para 3 of the petition, petitioner has alleged that the disputes and differences are covered by the arbitration clause 24 of the General Conditions of Contract. In reply to the same, respondent has merely stated that it would relate to the General Conditions of Contract. In other words, there is no denial to the same. ( 6 ) I am of the view that there exist a valid, legal and binding arbitration agreement between the parties and the disputes, as mentioned in para 2 of the petition, are covered by the arbitration clause. There is no other sufficient cause as to why these disputes should not be referred to an arbitrator, to be appointed in accordance with the arbitration clause. ( 7 ) UNDER the facts and circumstance of the case, I allow the petition and direct that the arbitration agreement be filed in court. I further direct Director General be Supplies and Disposals to the Government of India to appoint an arbitrator in accordance with clause 24 of the General Conditions of Contract, within six weeks from today and refer the disputes, as mentioned in the petition to him. No order as to costs.