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2006 (11) TMI 549

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..... nr. v. M/s.V.S.Engineering (P) Ltd & Anr.]. So far as order dated 27.4.2001 passed by the Division Bench of the High Court is concerned, all the issues raised in that order has already been decided by this Court in the case of SBP & Co. v. Patel Engineering Ltd. & Anr. [ (2005) 8 SCC 618] by a seven Judge Bench of this Court. Therefore, no purpose will be served by examining the validity of the order of the Division Bench of the High Court challenged in this present appeal as all issues are covered in the decision of SBP & Co. (supra), therefore this appeal is accordingly disposed of in the light of the aforesaid decision. Brief facts giving rise to another appeal are that M/s. V.S. Engineering Private Limited, Hyderabad was awarded the wo .....

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..... eking appointment of an Arbitrator to resolve the dispute emanating from the agreement dated 19.4.1993. The appellant- Union of India contested the arbitration application filed by the respondent by filing a counter and denying the allegations. It was pointed out that it was wrong to say that the payment was not done for the work done. It was alleged that the payment was made as per the terms of the contract and there was no delay on the part of the Railway. It was also contended that the request for referring the dispute for arbitration has to be done in accordance with Clauses 63 & 64 of the General Clauses of Contract. As per Clause 63, on receipt of the application the Railway had to notify the decisions on all matters including the mat .....

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..... was also challenged by Union of India by filing the present appeal. The Division Bench of the High Court by this order disposed of Union of India's appeal pertaining to this subject matter and directed that in view of the peculiar facts of this case that since General Manager of the Railway has already constituted an Arbitral Tribunal, the appellant should approach the learned Single Judge for modification/ recalling the aforesaid order dated 28.11.2000. Pursuant to that the appellant approached the learned Single Judge praying for modification of the order. Learned Single Judge dismissed the aforesaid application by order dated 21.2.2002. While dismissing the application, learned Single Judge observed as follows : " As this court is of th .....

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..... ole Arbitrator and the appointment of sole arbitrator was set aside. The conditions of Clauses 63 & 64 of the General Conditions of Contract are almost analogous to the one we have in our hand. In that case also relying on Clause 64 of the contract a three Judge Bench presided over by the Chief Justice of India observed as follows : " In view of the express provision contained therein that two gazetted railway officers shall be appointed as arbitrators, Justice P.K.Bahri could not be appointed by the High Court as the sole arbitrator. On this short ground alone, the judgment and order under challenge to the extent it appoints Justice P.K.Bahri as sole arbitrator is set aside. Within 30 days from today, the appellants herein shall appoint t .....

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..... tive following. But it did not lay down that when as per agreement arbitrator is appointed then Court should or should not interfere in the matter, whereas this issue is covered by earlier judgment by this Court in the case of Union of India v. M.P.Gupta (supra) by a three Judge bench which is binding on us. Therefore, the decision in SBP & Co. (supra) cannot be of any help to the respondent. It has also been pointed out that the arbitration proceedings are almost complete. But this Court has stayed the pronouncement of the award. In the present case, in view of the decision in M.P. Gupta (supra) a three Judge Bench has clearly stated that whenever the agreement specifically provided for appointment of two gazetted railway officers of equal .....

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