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TMI Blog2003 (9) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it carried out to the Executive Engineer. It appears that the demand was not accepted by the Executive Engineer and as a result thereof the respondent sought reference for adjudication of disputes by an arbitrator. 2. Consequently on 7th September, 1994, the Chief Engineer of Irrigation and Waterways Directorate appointed one Shri K.P. Choudhary, former Secretary of the said Directorate as an arbitrator and referred the disputes raised by the respondent to the arbitrator. Since for a considerable period of time the arbitrator did not enter upon the reference, the respondent filed an application under sections 5, 11 and 12 of the Arbitration Act, 1940 for removal of the arbitrator and appointment of a new arbitrator in his place before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut this Act shall apply in relation to arbitral proceedings which commenced on or after this Act comes into force. 5. On the arguments of the learned senior counsel for the appellant, the question that arises is as to when the proceedings commence. 6. In Shetty's Construction Co. (P.) Ltd. v. Konkan Railway Construction [1998] 5 SCC 599, it was held that the arbitration suit in respect of arbitration dispute shall be deemed to have commenced on the date on which the request for referring the dispute for arbitration is received by the respondent. 7. In Thyssen Stahlunion GmbH v. Steel Authority of India Ltd., [1999] 9 SCC 334, which was passionately relied upon by the learned senior counsel for the appellant, has, in our view, no applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d decision, therefore, has no application in the instant case. [see also Fuerst Day Lawson Ltd. v. Jindal Exports Ltd. [2001] 6 SCC 356]. Paragraphs 41 and 42 of Thyssen Stahlunion GmbH's case (supra) read as under : "41. Again a bare reading of the Foreign Awards Act and the Arbitration (Protocol and Convention) Act, 1937 would show that these two enactments are concerned only with recognition and enforcement of the foreign awards and do not contain provisions for the conduct of arbitral proceedings which would, of necessity, have taken place in a foreign country. The provisions of section 85(2)(a) insofar these apply to the Foreign Awards Act and the 1937 Act, would appear to be quite superfluous. A literal interpretation would render se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liation Act, 1996 came into force on 25-1-1996, would be enforced under the provisions of the Arbitration Act, 1940. . . ." Mr. Ray would contend that section 21 of the 1996 Act would not be applicable in the instant case. He would submit that the words "in relation to arbitral proceedings" which commenced for the purpose of the 1940 Act must be given the same meaning as contained in rule 3 of the First Schedule appended thereto. 9. Rule 3 of the First Schedule of the 1940 Act reads thus : "The arbitrators shall make their award within four months after entering on the reference or after having been called upon to act by notice in writing from any party to the arbitration agreement or within such extended time as the Court may allow." T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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