TMI Blog2004 (4) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... at the entire work was to be completed within 36 months from the date of handing over the site which would be within one month from the date of issue of acceptance letter. It was further stipulated that the notice of tender shall form part of the contract. It appears that the Union of India proposed an alternative design and in response thereto the contractor by his letter dated 25.8.1983 made an offer on the terms and conditions stipulated therein, clause 6 whereof reads as under : All other terms and conditions will be as per NIT except that the tender is valid for all the 6 bridges and cannot be divided. To avail the coming working season if the work is allotted within 60 days of opening of the tender, we are ready to offer suitable rebate. The Union of India in response thereto showed its inclination but requested the contractor to withdraw various stipulations/conditions specified in his tender in terms of a letter dated 30.09.1983 stating: You are requested to withdraw various stipulations/conditions specified by you in your tender as brought out above. In case you consider that the withdrawal of the stipulation/conditions involve financial effect you are re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Sipu at 148.3 km Rs.6,66,000.00 Rs.46,89,000.00 Rupees forty six lakhs eighty nine thousand only., This rebate has been offered subject to our condition that the work is allotted to us by 31st December 1983 and if the work is allotted to us as a whole, without breaking up the same partwise as referred to in para 5 of your letter no.27537/DGBRE/VTK/72/E8 dt. 30th Sep. 1983. Hope this clarified all the points raised by you. The said offer was, thus, again a conditional one. The Central Government by a letter dated 1.3.1984 addressed to the Director General Border Roads, conveyed the sanction of the President to the variation from the standard and special conditions of the contract, inter alia, stating : Mobilisation Advance After acceptance of the tender and at the time of placing the work order on the contractor he shall be paid on demand 10% interest free mobilization advance of the contract value against the bank guarantee bond from a Scheduled Bank. The loan advance shall be recovered proportionately from his 'on account' payment made to hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur : Sonitpur, rejected the application filed by the Union of India for setting aside the award and made the same rule of the Court. Aggrieved by and dissatisfied therewith, an appeal was filed by the Union of India before the Gauhati High Court which was marked as F.A. No. 8 of 1993. The High Court allowed the appeal in part holding, inter alia,, that having regard to the delay in handing over the site for Cane Nallah Bridge, the award of ₹ 5,00,000/- for the damages caused to the contractor although justified but as the contractor made two offers of rebate in terms of its letters dated 25.8.1983 and 22.11.1983 which had not been considered by the learned Arbitrator, the award in respect thereof was not sustainable, and a part of the award could be served, it set aside the award for a sum of ₹ 7,38,000/-. The parties are in appeals before us against the said judgment. Mr. K.K. Rohtagi, learned counsel appearing on behalf of the appellant, would, inter alia, submit that the award being a non-speaking one and having regard to the fact that the learned Arbitrator in his award categorically stated that he had taken into consideration all the documents, the Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties . It has not been disputed that the documents in question referred to in para 17 of the judgment of the High Court were filed before the learned Arbitrator. The arbitrator was, thus, required to consider as to whether the contractor can substantiate his claim relying on or on the basis of non-compliance of the conditions precedent in relation to the offer of rebate made by it in his letters dated 25.8.1983 and 22.11.1983. The said contention evidently was, thus, a subject matter of determination by the Arbitrator. An Arbitrator being a judge chosen by the parties, his decision would ordinarily be final unless one or the other condition contained in Section 30 of the Arbitration Act is satisfied for the purpose of setting aside his award. Once it is held that the construction of an agreement fell for consideration of the Arbitrator, the determination thereupon shall not ordinarily be interfered with. The court's jurisdiction in this behalf is merely to see whether the Arbitrator has exceeded his jurisdiction or not. The High Court did not point out any material on the basis whereof it could be said to have been established that the two documents in question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was held : 26. In order to determine whether the arbitrator has acted in excess of jurisdiction what has to be seen is whether the claimant could raise a particular dispute or claim before an arbitrator. If the answer is in the affirmative then it is clear that the arbitrator would have the jurisdiction to deal with such a claim. On the other hand if the arbitration clause or a specific term in the contract or the law does not permit or give the arbitrator the power to decide or to adjudicate on a dispute raised by the claimant or there is a specific bar to the raising of a particular dispute or claim then any decision given by the arbitrator in respect thereof would clearly be in excess of jurisdiction. In order to find whether the arbitrator has acted in excess of jurisdiction the court may have to look into some documents including the contract as well as the reference of the dispute made to the arbitrators limited for the purpose of seeing whether the arbitrator has the jurisdiction to decide the claim made in the arbitration proceedings. In Rajasthan State Mines Minerals Ltd. vs. Eastern Engineering Enterprises and Another [(1999) 9 SCC 283], this Court, opined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew is possible. However, it is also trite that if no specific question of law is referred, the decision of the Arbitrator on that question would not be final, however, much it may be within his jurisdiction and indeed essential for him to decide the question incidentally. Only in a case where specific question of law touching upon the jurisdiction of the arbitrator was referred for determining his jurisdiction by the parties, then the finding of the arbitrator on the said question between the parties may be binding. 18. It is also trite that where the award contains reasons, the same may be interfered, inter alia, when it is based on a wrong proposition of law. However, when the view of the arbitrator is a plausible one, the Court would not normally interfere. Furthermore, as we do not find that there existed any material on records to show that the Arbitrator while making an award ignored any material documents, the impugned judgment cannot be sustained, which is set aside accordingly. In the result Civil Appeal No.6678 of 1999 filed by the contractor is, therefore, allowed and Civil Appeal No.1984 of 2000 filed by the Union of India is dismissed. No costs. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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