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2003 DIGILAW 803 (MP)

Reliable Contractors v. Union of India

2003-07-01

S.K.PANDE

body2003
ORDER : 1. This revision under section 115 of Civil Procedure Code is directed against the order dated 30-1-2001, passed by 12th ADJ, Jabalpur in Ex. T.C. No. 3/98. 2. Facts in brief are, applicants offer for supply of potatoes, garlic and onions to ASC Jabalpur for the period of 1-4-1975 to 31-3-1996. On account of rise in the cost of onions and potatoes, the applicants made demand for escalation to meet the rise in procurement. This demand was not accepted by non-applicant, therefore could not affect supply resulting in dispute between the parties. Invoking the Arbitration Clause, the applicants called upon the deputy Director supply and transport to nominate an arbitrator. Finally application under section 20(1) of Arbitration Act, 1940 was filed by the applicants. The 12th ADJ, Jabalpur vide order dated 4-3-1997, referred the dispute to Lt. Col. L.S. Sundaram. The arbitrator rendered the award on 7-7-1997. This award was put to execution. The applicants contended that the proceedings under section 20 of the Arbitration Act, 1940 were initiated, therefore, award dated 7-7-1997 without being made the rule of the Court, could not be proceeded with in execution. This contention of the Applicants was rejected vide impugned order dated 30-1-2001 passed by 12th ADJ, Jabalpur. 3. With reference to arbitration Clause, application under section 20 of the Arbitration, 1940 was filed on 5-12-1995 before the commencement of the Act, Arbitration and Conciliation Act, 1996. However, order referring the dispute to Arbitrator was passed on 4-3-1997. The Arbitrator on the basis of this order dated 4-3-1997 commenced proceedings of arbitration under the provisions of new Act of 1996 and has rendered award dated 7-7-1997. Accordingly, the Court below held that after passing of order dated 4-3-1997, the lis under section 20 of the Arbitration Act since had been terminated finally, the Arbitrator proceeded with the hearing of matter under the provisions of new Act. The Award dated 7-7-1997 was not assailed under section 34 of Arbitration and Conciliation Act, 1996, therefore, finality has been attached to the award. Section 85 of the new Act is as under:- “85. Repeal and Savings: (1) The Arbitration (Protocol and Convention) Act, 1937, the Arbitration Act, 1940 and the Foreign Awards (Recognition and Enforcement) Act, 1961 are hereby repealed. Section 85 of the new Act is as under:- “85. Repeal and Savings: (1) The Arbitration (Protocol and Convention) Act, 1937, the Arbitration Act, 1940 and the Foreign Awards (Recognition and Enforcement) Act, 1961 are hereby repealed. (2) Notwithstanding such repeal: (a) the provisions of the said enactments shall apply in relation to arbitral proceedings which commenced before this Act came into force unless otherwise agreed by the parties but this Act shall apply in relation to arbitral proceedings which commenced on or after this Act comes into force.” 4. The arbitral proceedings commenced on or before the present Act comes into force, have been excluded from the operation of provisions of Arbitration Act, 1940 as the Act was repealed. The Arbitrator since has proceeded under the provisions of new Act, award dated 7-7-1997 does not require to be made the rule of the Court under the provisions of the Act of 1940. The contention raised by the applicant was rightly rejected by the Court below. 5. Consequently, revision fails and is dismissed. No order as to costs.