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2000 DIGILAW 40 (GAU)

Raj Brothers v. Union of India

2000-01-30

N.SURJAMANI SINGH

body2000
The petitioner is a contractor by profession who entered into a contract agreement bearing No.CESZ/MISM/12 of 82-83 for the provision of Swimming Pool (Olympic size) at Missamari with the opposite party/respondents and petitioner completed the execution of the work and construction of it but some disputes arose between the parties and accordingly as per provisions of contract agreement IAPN 2249, the disputes were referred to arbitration of one Shri SK Rao, sole Arbitrator, but according to the petitioner he was not a competent officer to act as a sole Arbitrator and in that view of the matter, the petitioner filed an application for the removal of the said Arbitrator and restraining him from proceeding of the arbitration and the said application was registered as (Arb) Misc Case 71 of 1995 and the Court allowed the petition vide order dated 19.9.95 and subsequently, Brig TK Mittal, Chief Engineer, was appointed as the sole Arbitrator who entered into reference and passed his Award on 30.9.99 and the said Arbitrator Brig TK Mittal by. his office letter dated 3.11.99 bearing No. 174567TKM/102/E8 addressed to the Chief Engineer, Shillong Zone, Spread Eagle Falls, Shillong, forwarded the original Award and connected documents for filing the same in the registry of the District Court, Tezpur, Assam but the said Chief Engineer on the contrary, rather illegally filed a petition under section 14 of the Arbitration Act, 1940, with a signed copy of the Award in the Court of Assistant, to Deputy Commissioner, Shillong being Misc (Arb) Case No. 85 (T) of 1999 and the Court of Assistant to Deputy Commissioner has issued show cause notice to the parties. 2. Mr. SR Sen, learned senior counsel for the petitioner argued that by virtue of the officer letter dated 3.11.99 as in Annexure I to this petition and also the letter of authorisation for filing the Award in the District Court at Tezpur and a letter addressed to the Court in original on behalf of the Arbitrator, the Chief Engineer, Shillong Zone, Spread Eagle Falls, Shillong ought to have filed the original Award in the Court of the Assistant District Judge, Sonitpur, Tezpur and not in the Court of the Assistant to Deputy Commissioner, Shillong, in view of the provisions of law laid down under section 14 (2) of the Arbitration Act. Referring to a decision of the Apex Court reported in AIR 1981 SC 2075 , Mr. Referring to a decision of the Apex Court reported in AIR 1981 SC 2075 , Mr. Sen, learned senior counsel submitted that no law will come to rescue it as it ousted the jurisdiction of other Courts including the Court of Assistant to Deputy Commissioner except the Court of Assistant District Judge, Sonitpur, Tezpur, as reference was made to the Court of the Assistant District Judge, Sonitpur, pertaining to the eligibility and validity of the appointment of one Arbitrator namely SK Rao for the related dispute between the parties and the Court of Assistant c District Judge, Sonitpur, granted injunction order to and in favour of the present petitioner restraining the said Arbitrator to act and decide the dispute but the matter has become in fructuous in view of the appointment of a new Arbitrator namely Brig TK Mittal. It is also argued by Mr. Sen that the second agreement was executed at Sonitpur and the work site is also situated at Sonitpur under CWE, Tezpur. As the original Award is to be filed before the District Court at Tezpur as per office letter and order of 3.5.99 issued by the Brig filing of the signed Award in the Court of the Assistant to Deputy Commissioner by the Chief Engineer, Shillong Zone, Spread Eagle Falls, cannot be entertained as the Assistant to Deputy Commissioner has no jurisdiction to entertain it. 3. At the hearing, Mr. SC Shyam, learned Additional Central Govt Standing Counsel for the respondents submitted, that the Chief Engineer concerned has jurisdiction and authority to file the signed Award in the Court of the Assistant to Deputy Commissioner in view of the provisions of law laid down under section 14, 34 (1) of the Arbitration Act and, apart from it, the original agreement was executed between the parties at Shillong and, as such, the Assistant to Deputy Commissioner has ample jurisdiction to decide the matter and there is no illegality or infirmity in filing the said signed Award in the Court of Assistant to Deputy Commissioner at Shillong. Mr. Mr. Shyam, learned Additional CGSC also submitted that the signed Award was already was filed by the Chief Engineer concerned who is competent to do so in the Court of the Assistant to Deputy Commissioner earlier on 5.11.99 before the office letter dated 3.11.99 as in Annexure I issued by the Brig TK Mittal was received by the Chief Engineer concerned and the Chief Engineer concerned received the said letter of 3.11.99 only on 15.11.99. Mr. Shyam also relied upon the decision of the Apex Court reported in AIR 1981 SC 2075 and contended that in that case, the Apex Court held that the Award was to be submitted before the Supreme Court itself as the Supreme Court had appointed the Arbitrator but, in the instant case the Arbitrator was appointed by the Govt and he was not appointed by the Court and, as such, there shall be no illegality or infirmity in filing the Award at Shillong Court having jurisdiction to entertain it as the original agreement was entered amongst the parties at Shillong for the said work, and, as such, the facts of the present case is quite different from that of the facts of the case involved in the Apex Court. 4. Mr. SR Sen, learned senior counsel also argued that the petitioner filed the signed Award in the Court of Assistant District Judge, Sonitpur, Tezpur and the same was registered as Money Suit No.64 of 1999. Mr. Sen also relied upon a decision of the Orissa High Court reported in AIR 1983 Orissa 10. It is submitted by Mr. Sen that the petitioner filed the signed Award in the Court of Assistant District Judge in Sonitpur on 9.11.99 and he made a request to the Arbitrator on 8.10.99 for filing the Award in the Court of the Assistant District Judge at Sonitpur earlier and, on the basis of it, he wrote a letter to the Chief Engineer concerned for filing the Award in the District Court at Sonitpur. 5. The issue or question involved in this case is, whether in view of the circumstances herein, which is the Court which should have jurisdiction to entertain the Award, in other words, which is the Court amongst, the Assistant District Judge, Sonitpur, Tezpur, or Assistant to the Deputy Commissioner, Shillong, having jurisdiction in which the Award should be filed by the Arbitrator. 6. 6. Section 2 (c) of the Arbitration Act, 1940, defines 'Court' which means a civil Court having jurisdiction to decide the question forming the subject matter of the reference if the same had been the subject matter of a suit, but does not, except for the purpose of arbitration proceedings under section 21 includes a Small Cause Court. Section 14 (2) is also relevant for the present purpose as section 14 provides for filing of the Award and, apart from it, section 31 is also relevant and material for just determination of the real points in controversy between the parties and, accordingly the same are quoted below one after another. “14. Award to be signed and filed-(1) When the arbitrators or umpire have made their award, they shall sign it and shall give notice in writing to the parties of the making and signing thereof and of the amount of fees and charges payable in respect of the arbitration and award. (2) The arbitrators or umpire shall, at the request of any party to the arbitration agreement or any person claiming under such party or if so directed by the Court and upon payment of the fees and charges due in respect of the arbitration and award and of the costs and charges of filing the award, cause the award or a signed copy of it, together with any depositions and documents which may have been taken and proved before them, to be filed in Court, and the Court shall thereupon give notice to the parties of the filing of the award. 31. Jurisdiction-(1) Subject to the provisions of this Act, an award may be filed in any Court having jurisdiction in the matter to which the reference relates. (2) Notwithstanding anything contained in any other law for the time being in force and save as otherwise provided in this Act, all questions regarding the validity, effect or existence of an award or any arbitration agreement between the parties to the agreement or persons claiming under them shall be decided by the Court in which the award under the agreement has been or may be filed and by no other Court. (3) All applications regarding the conduct of arbitration proceeding otherwise arising out of such proceedings shall be made' to the Court where the award has been, or may be filed and no to other Court. (3) All applications regarding the conduct of arbitration proceeding otherwise arising out of such proceedings shall be made' to the Court where the award has been, or may be filed and no to other Court. (4) Notwithstanding anything contained elsewhere in this Act or in any other law for the time being in force wherein any reference any application under this Act a has been made in a Court competent to entertain, that Court alone shall have jurisdiction over the arbitration proceedings and all subsequent applications arising out of that reference and the arbitration proceedings shall be made in that Court and in no other Court.” 7. A bare perusal of these provisions of law shows that section 31 deals with the jurisdiction of the Court in respect of an Award which is to be filed in b any Court having the jurisdiction in the matter to Which the reference relates to and section 14 (2) of the Act provides for filing of the Award in the Court in view of the definition of the expression 'Court', the Arbitrator will have to file the Award in the Court which would have jurisdiction to entertain the suit forming the subject matter of reference. In the instant case, the petitioner on earlier occasion filed the Misc (Arb) Case No. 71 of 1995 under section 5 read with section 41 of the Act of 1940 with relation to matters arising out of the same reference by which disputes arising in the contract agreement No.CESZ/MISM/ 12 of 82-83 were referred to the sole Arbitrator for adjudication and, as such, as per the specific provisions of the Act, any subsequent applications arising out of that reference and the arbitration proceedings, shall be made in that Court namely, ^ the Court of the Assistant District Judge, Sonitpur, Tezpur which is the competent Court having jurisdiction in the matter to which the reference relates as required under section 31 of the Act of 1940 and not in the Court of the Assistant to Deputy Commissioner, Shillong, which has no jurisdiction to entertain and try any petition in connection with the matter arising out of the same reference as per related provisions of law laid down under section 31 (4) of the Act of 1940. Therefore, the Chief Engineer, Shillong Zone, Spread Eagle Falls, Shillong, ought to have filed the original Award in the Court of the Assistant District Judge,. Sonitpur, Tezpur, and not in the Court of Assistant to Deputy Commissioner, Shillong, in view of the above established principles of law. Similar related issues were once examined and dealt with by the Apex Court in M/s Guru Nanak Foundation vs. M/s Rattan Singh & sons, reported in AIR 1981 SC 2075 . 8. In view of the above position, this Court need not go more into depth as the law is very clear in the matter. In the result, this petition is allowed thus declaring that the Court of Assistant District Judge, Sonitpur, Tezpur is the Court having exclusive jurisdiction wherein the related Award dated 30.9.99 passed in contract agreement No.CESZ/MISM/12 of 82-83 passed by Brig TJK Mittal should be filed and accordingly. I direct the respondents to collect the related Award and connected documents/papers from the Court of the Assistant to Deputy Commissioner, Shillong and the Chief Engineer, Shillong Zone, Spread Eagle Falls, Shillong, along with therelated records from the Court of the Assistant to the Deputy Commissioner, Shillong, and, that the same be filed in the Court of the Assistant District Judge, Sonitpur, Tezpur. I further direct, that on the receipt of the said Award and the related records containing the proceedings, a notice of filing of the Award should be issued to the parties and the further proceedings should be held in the Court of the Assistant District Judge, Sonitpur, Tezpur. The parties and authority concerned shall collect the Award along with the said records a mentioned above and file the same in the Court of the Assistant District Judge, Sonitpur, Tezpur within a period of one month from today and thereafter, the Court concerned shall dispose of the matter in accordance with law as early as possible. 9. The parties shall bear their own costs.