Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1940-Section 20 Arbitration Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration: Arbitration Act, 1940-Section 20-Excepted matters-Criteria of Reference of excepted matters to arbitration-Held, the function of reference of matters to arbitration by Court is not a mechanical administrative function but a judicial function-In house remedy for settlement of a matter is not a prerequisite for treating the matter to be an excepted matter-On facts, the claims are excepted matters and hence cannot be referred for arbitration-Contract Act, 1872-Sections 55 and 56. Respondent was granted a construction contract by appellant-Railways. The contract is subject to the General Conditions and Special Conditions of the contract of Railways. Due to certain disputes, the respondent filed a petition before High Court under Section 20 of the Arbitration Act, 1940 praying for filing of the arbitration agreement in the Court and for reference of the six claims set out in the application to arbitration for settlement. The Single Judge directed only the first two claims for arbitration and treated the remaining four claims as 'excepted matters' being within clause 63 of the General Conditions of the contract and thereby not arbitrable. In appeal by the respondent, Division Bench of the High Court held that the four claims are not 'excepted matters' and hence directed for arbitration. In appeal to the Court, the appellant contended that the four claims are covered by different clauses of the Special Conditions of the Contract and hence not arbitration as per clause 63 of the General Conditions of the contract. The respondent contended that a matter cannot be treated as an 'excepted matter' if it is merely covered by any of the clauses in the Special Conditions of the contract and no in-house remedy is provided by way of decision of an authority of the Railways; and that on filing a petition under Section 20 of the Act, the Court should order the arbitration agreement to be filed and make an order of reference to the arbitrator and it is for the arbitrator to adjudicate whether a claim is entertainable or awardable being an 'excepted matter'. |
Judge | Honble Mr. Justice R.C. Lahoti |
Neutral Citation | 2002 INSC 114 |
Petitioner | General Manager Northern Railways And Anr. |
Respondent | Sarvesh Chopra |
SCR | [2002] 2 S.C.R. 156 |
Judgement Date | 2002-03-01 |
Case Number | 1791 |
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