1985 (1) TMI 342 - HC - Indian Laws

Summary

Issues involved: Application for revoking authority of Arbitrator and appointment of another impartial Arbitrator.

Issue 1: Barred Petition under Civil P.C.:
The contractor filed a second petition challenging the authority of the Arbitrator. The Court held that the second petition was not barred under Order 23, Rule 1(4) of the Civil P.C. based on precedents stating that if the second suit is filed before the first suit is withdrawn, it is not subject to dismissal under the mentioned rule.

Issue 2: Jurisdiction of Civil Courts:
No arguments were raised on this issue, and the findings of the Court below were upheld.

Issue 3: Validity of Arbitration Agreement:
The Court analyzed the conditions of the work order and found that the clause referring disputes to the Superintending Engineer constituted an arbitration agreement. The contractor's submission of the claim to the Engineer for arbitration was deemed valid, and failure of the Arbitrator to proceed with the arbitration was considered grounds for removal and appointment of a new Arbitrator. The Court reversed the decision of the trial Court and directed the Superintending Engineer to enter into arbitration based on the contractor's claim.

This judgment highlights the interpretation of arbitration agreements, the legality of unilateral references, and the process for removal and appointment of Arbitrators in case of non-compliance.