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TMI Blog1969 (4) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... eference of the dispute to the officer mentioned in the agreement. In the year 1942 tenders were invited by the Union of India for construction of certain runways and roads in an aerodrome at Dalbhumgarh. The tender of the respondent, Surjeet Singh Atwal, was accepted and the agreement was executed on August 19, 1944. Clause 25 of the agreement provided for the settlement of the disputes by reference to the arbitration of the Superintending Engineer of thek Circle for the time being, according to law. The respondent alleged that he had completed the work entrusted to him under the contract and made a claim of Rs. 50,000 on the basis of his last bill. On the other hand the Union of India made a demand against the contractor for a sum of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the agreement should be filed in the Calcutta High Court. By its judgment dated January 29, 1963 the Subordinate Judge, First Class, Delhi allowed the application of the appellant and ordered that the disputes between the parties be referred to the Superintending Engineer, Calcutta Circle No. 1, C.P.W.D. The learned Subordinate Judge held that the contract of the parties was concluded at Delhi and it was signed at Delhi on behalf of the respondent and, therefore, the Delhi court had jurisdiction to try the suit. Aggrieved by the judgment of the Subordinate Judge, First Class that respondent filed an appeal under s. 39 of the in the Punjab High Court. By his judgment dated January 11, 1965 D. K. Mahajan J., allowed the appeal and set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the time being in force, where in any reference any application under this Act has been made in a Court competent to entertain it, that Court alone shall have jurisdiction over the arbitration proceedings and all subsequent applications arising out of that reference and the arbitration proceedings shall be made in that Court and in no other Court. " Section 34 states : "Where any party to an arbitration agreement or any person claiming under him commences any legal proceedings against any other party to the agreement or any person claiming under him in respect of any matter agreed to be referred, any party to such legal proceedings may, at any time before filing a written statement or taking any other steps in the proceedings, apply t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -ss. (2), (3) and (4)of s. 31 were intended to make that jurisdiction effective in three different ways (I ) by vesting in one court the authority to deal with all questions regarding the validity, effect or existence of an award or an arbitration agreement, (2) by casting on the persons concerned the obligation to file all applications regarding the conduct of arbitration proceedings or otherwise arising out of such proceedings in one court, and (3) by vesting exclusive jurisdiction in the court in which the first application relating to the matter was filed. The context, therefore, of sub-s. (4) would seem to indicate that the sub-section was not meant to be confined to applications made during the pendency of an arbitration. The necessit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder s' 34 is clearly not an application belonging to the same category. It has nothing to do with any reference. It is only intended to make an arbitration agreement effective and prevent a party from going to Court contrary to his own agreement that the dispute is to be adjudicated by a private tribunal. We do not, therefore, consider that an application for stay of suit under s. 34 is an application in a reference even within the wider meaning given to that phrase by this Court in Kumbha Mawji's case([1953] S.C.R. 878). The second condition imposed by s. 31(4) is that the application for stay must be made to a Court competent to entertain it. It should be noticed that in s. 34 the expression "judicial authority" is used. The sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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