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2001 DIGILAW 1618 (AP)

Chief Project Manager, Railway Electrification, Visakhapatnam v. Electrical Constructions and Equipment Co. Ltd.

2001-12-12

A.R.LAKSHMANAN, V.V.S.RAO

body2001
AR. LAKSHMANAN, C. J. ( 1 ) CHIEF Project Manager, Railway electrification, Visakhapatnam is the petitioner in this writ petition. ( 2 ) IN this writ petition, the order dated 2-8-2001 passed in A. A. No. 58 of 1999 appointine the second respondent. Sri Justice N. D. Patnaik, as the sole arbitrator on the application filed by the first respondent herein under Section 11 (6) of the arbitration and Conciliation Act, 1996 (for short "the Act") is assailed. ( 3 ) THE first respondent was awarded with Over head Equipment Contract for bellampalli (Excl) - Ballarsh (Incl.) section of vijayawada - Ballarsh Railway Line under the approval letter dated 31-1-1983 issued by the Railway Board. According to the railways, the first respondent did not complete the contract work awarded within the time stipulated and eleven extensions were given to it to complete the work. The first respondent completed all the works by march, 1989, but the extension was given to him to carry out the left over miscellaneous works, which it did complete by the end of march, 1991. Payments were made to it, which it received without protest. After the completion of the entire work by March, 1991, the first respondent made a claim for settlement of Rs. 92. 51 lakhs. According to the railways, the claim made by the first respondent itself was time barred. It is further submitted that as per the contract agreement; the work executed by the first respondent for which payment has been made by the petitioner and the same was received by the first respondent without any protest and that the claim of the compensation is not subject matter of contract agreement as per clause 1. 2. 54 of the special conditions of the contract read with clause 34 of General Conditions of contract. ( 4 ) THE first respondent, as already stated, moved this Court by filing A. A. No. 58 of 1999 to appoint an arbitrator as envisaged under Section 11 of the Act for deciding the issue. A learned Single Judge of this Court after hearing the Counsel for the petitioner and the Standing Counsel for the Railways passed an order by appointing the second respondent as sole arbitrator. Aggrieved by this appointment, the present writ petition has been filed. A learned Single Judge of this Court after hearing the Counsel for the petitioner and the Standing Counsel for the Railways passed an order by appointing the second respondent as sole arbitrator. Aggrieved by this appointment, the present writ petition has been filed. ( 5 ) IN our opinion, the order which is now impugned in this writ petition was passed by the learned Single Judge after hearing the counsel for the contractor and the Counsel for the Railways. It is not an ex parte order as alleged. When an order is passed by the chief Justice appointing an arbitrator under section 11 (6) of the Act, the said order is not amenable to jurisdiction under Article 226 of the Constitution of India. A Division Bench of this Court comprising of S. B. Sinha, CJ. , and V. V. S. Rao, J. , in the judgment reported in Union of India v. Vengamamba Engineering co. Juputi, Krishna Dist. , has also taken the similar view and that the Bench was of the opinion that the writ petition would not be maintainable when an arbitrator is appointed by the Chief Justice or by his nominee. Since the arbitrator was appointed after hearing both parties, it is not now open to the Railways to file the present writ petition questioning the correctness of the said order. We are, therefore, of the opinion that the writ petition is not maintainable under Article 226 of the Constitution of india. ( 6 ) THE arbitrator was appointed on 2-8-2001. We are told that the arbitrator has entered upon the reference. Therefore, the petitioner is at liberty to move the said arbitrator and raise all objections in regard to the claim of the first respondent herein, including the counter-claim in accordance with law. The arbitrator is requested to entertain the claim to be made by the railways and dispose of the same on merits after affording opportunity to both sides. The writ petition is disposed of accordingly.