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TMI Blog2002 (11) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... or. A copy of this petition has been produced as exhibit P-1 with the original petition. The matter was referred to the designated judge. Vide order dated August 16, 2001, the application was dismissed. A copy of the order passed by the hon ble designated judge has been produced as exhibit P-14. It was held that there is nothing on record to show that there was an arbitration agreement between the parties. Aggrieved by the order, the appellant filed a petition under article 226 of the Constitution. It was dismissed by the learned Single Judge vide order dated May 31, 2002. Hence, this appeal. 2. Learned Counsel for the appellant has raised a twofold plea. Firstly, it has been contended that in the statement of objects for which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed and in the articles of association, the respondent has no choice but to refer every dispute to arbitration. Is it so? 4. In the present case, the respondent is a Government company. It was established primarily with the object of providing housing and office accommodation to the personnel of the Police Department. For this purpose, it had reserved to itself the right to acquire land, construct and maintain buildings, to let them out on rent or lease, for housing employees or for using such buildings as offices. The board has also reserved in clause (18) the right to refer all questions, disputes or differences to arbitration. Similarly, in the articles of association, the powers of the Board of Directors were delineated in clause 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notice by which the tenders were invited, a provision for settlement of disputes had been made in clause 25. A further provision regarding arbitration was made in clause 29A. Thus, a provision for arbitration agreement should be read into the contract, a copy of which has been produced at exhibit P-4. 7. The two provisions as contained in clauses 25 and 29A read as under: Clause 25 : "Except where otherwise provided in the contract all questions and disputes relating to the meaning of the specifications, design, drawing and instructions hereinbefore mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter of thing whatsoever in any way arising out of or relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... retained under this clause and duly notified as such to the contractor." 8. A perusal of clause 25 shows that for the purpose of settlement of disputes an omnibus provision was made by which the jurisdiction of all courts except those at Trivandrum was excluded. In other words, it was provided that in the case of a dispute arising out of the contract in respect of any matter, no court shall have jurisdiction except the courts at Trivandrum. Thus, the appellant can derive no benefit from the provision contained in clause 25. 9. Mr. Thomas submits that the only implication of clause 25 was that the jurisdiction of all civil courts was ousted. In other words, the matter can be decided only by an arbitrator. This contention is wholly mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontract" has been reserved. Thereafter, it has been provided that the money so withheld or retained shall be payable only when the dispute is "either mutually settled or determined by the arbitration clause or by the competent court, as the case may be". 12. On a consideration of this clause, the only thing which emerges is that a provision for arbitration can be made. If so made, the dispute can be settled by reference to arbitration. However, it is clearly implicit in the provision that unless the contract contains a clause for arbitration, no reference shall be required to be made. Both the provisions as noticed above do not imply that an arbitration clause shall exist in every agreement or contract. A specific provision has to be ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... followed. We cannot read the above provision to mean that all provisions as contained in the Madras Detailed Standard Specifications for use in the Public Works Department or the Madras State have ipso facto been incorporated in the agreement between the appellant and the respondent-corporation. Such a contention is wholly untenable. The provision only lays down an order of preference about the specifications. Nothing more. 15. Lastly, counsel has submitted that on a cumulative reading of the above noticed provisions, it should be inferred that there is an arbitration agreement between the parties as contemplated under section 7 of the Arbitration and Conciliation Act, 1996. Even this contention cannot be accepted. The plain language ..... X X X X Extracts X X X X X X X X Extracts X X X X
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