TMI Blog2003 (11) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... t in dispute that the Superintending Engineer, P.W.D., Gulbarga Circle, Gulbarga, ex-officio, was named to decide such disputes. Before the Arbitrator, the parties filed their claims and counter claims. The University also filed certain counter claims. After hearing the parties, the Superintending Engineer, Gulbarga Circle, Gulbarga, who acted as an Arbitrator, gave the Award. However, no copy of the Award was furnished to the appellant as a result of which the appellant filed a petition under Article 226 of the Constitution of India for issue of writ of mandamus directing the Arbitrator to deliver a certified copy of the Award given by him. In compliance of the directions of the High Court, the Arbitrator sent a certified copy of the Award dated 30th July, 1999. After the receipt of the certified copy of the Award, the appellant put the Award for execution before the Principal Civil Judge (Senior Division), Gulbarga. The Gulbarga University filed an objection in the execution petition filed by the appellant purported to be under Section 47 of the Code of Civil Procedure. However, the Executing Court rejected the said objection on 19th October, 2000. Aggrieved, the Gulbarga Univers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll questions relating to the matters specified therein as also any other question, claim, right, matter or thing whatsoever in any way arising out of or relating to the contract. Such dispute may also relate to designs, drawings, specifications, estimates, instructions, orders or those conditions or otherwise concerning the works or the execution or failure to execute the same. Such disputes may be referred to for decision of the Superintending Engineer; whether arising during the progress of the work after the completion thereof. 7. There cannot, thus, be any doubt whatsoever that Clause 30 aforementioned fulfills all the criteria of a valid arbitration agreement. It is further not in dispute that the Superintending Engineer, Gulbarga Circle, Gulbarga is an independent person. 8. In Bihar State Mineral Development Corporation and Anr. v. Encon Builders (I) (P) Ltd., AIR2003SC3688 , laid down the essential elements of the arbitration agreement, which axe as follows: (i) There must be a present or a future difference in connection with some contemplated affair; (ii) There must be the intention of the parties to settle such difference by a private tribunal; (iii) The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim, right, matter or thing in any way arising out of or relating to the contract or these conditions or concerning abandonment of the contract by the contractor and in respect of all other matters arising out of this contract and not specifically mentioned herein. 13. It was difficult for the Court to spell out any intention of the parties to appoint the Managing Director as an Arbitrator having regard to the contents of the said two clauses. We may refer to the observations of this Court therein made in this regard, which are as under: Therefore, in respect of certain claims, the decision of the Executive Engineer is final and binding on both the parties to the contract. While in respect of the remaining matters, the decision of the Managing Director of the respondent is final, conclusive and binding on both the parties to the contract. Clause 24 does not mention that they dispute can be referred to the arbitration of the Managing Director. Clause 24 also does not spell out any duty on the part of the Managing Director to record evidence or to hear both parties before deciding the questions before him. From the wording of Clause 24, it is difficult to spell out any int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly be mentioned therein. Such conditions, it is trite are implicit in the decision making process in the arbitration proceedings. Compliance of the principles of natural justice inheres in an arbitration process. They, irrespective of the fact as to whether recorded specifically in the arbitration agreement or not are required to be followed. Once the principles of natural justice are not complied with, the Award made by the Arbitrator would be rendered invalid. We, therefore, are of the opinion that the arbitration clause does not necessitate spelling out of a duty on the part of the arbitrator to hear both parties before deciding the question before him. The expression decision' subsumes adjudicating of the disputes. Here in the instant case, it will bear repetition to state, that the disputes between the parties arise out of a contract and in relation to matters specified therein and, thus, were required to be decided and such decisions are not only final and binding on the parties, but they are conclusive which clearly spells out the finality of such decisions as also its binding nature. 17. A clause which is inserted in a contract agreement for the purpose of preventio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Award dated 30th July, 1999, it would appear that the Arbitrator entered into the reference in view of the reference made by the Registrar of the Gulbarga University on the claims and disputes arising out of contract of Construction of Indoor stadium at University Campus , which has arisen between the parties hereto. 23. Learned counsel for the respondent then urged that his client has not been given sufficient opportunity to lead evidence. The contention cannot be accepted for more than one reason. The matter was heard by the Arbitrator. Both the parties were represented by their agents and authorised representatives. It will bear repetition to state that claims and counter claims were filed by the parties and they filed documents in support of their respective claims. 24. The learned Arbitrator in his Award recorded that the parties were given full opportunity to present their case and have their say on each of their claims and contentions in the meeting held in his office on 5.3.99. The Arbitrator in his Award further stated that as the parties based their cases only on the documents and did not pray for adduction of oral evidence and in that view of the matter, in our op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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