Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1996 - Arbitration and Conciliation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996 - s.11 - Clause 10 of the conditions of contract (forming part of the agreements between the State and the contractors) related to power of the Engineer-in-Chief to make addiitions and alterations in the drawings and specifications and execution of non-tendered additional items of work - The last sentence of the proviso to clause 10 provided that where in regard to a non-tendered additional work executed by the contractor, if the contractor was not satisfied with the unilateral determination. of the rate therefor by the Engineer-in-Charge the rate for such work will be finally determined by the Superintending Engineer - Disputes raised by contractors against the State Government - Applications filed by contractors u/s. 11 - _Chief Justice of High Court held that the last sentence of the proviso to the said clause 10 was an arbitration agreement and appointed arbitrators to decide the disputes - On appeal, held: The last sentence of the proviso to clause 10 did not make the decision of the Superintending Engineer binding on either party - The decision of Superintending Engineer was· not a judicial determination, but decision of one party which was open to challenge by the other party in a court of law -That clause 10 was never intended to be an arbitration agreement is evident from the contract itself - The Standard Conditions of Contract of the state government, as originally formulated consisted of a provision (Clause 23) relating to settlement of disputes by arbitration- The.said clause was deleted by the State Government fr.om the Standard Conditions of Contract by official Memorandum dated. 24.12.1981 - Contracts entered by the State Government subsequent to 24.12.1981, as in the instant cases, did not have the said arbitration clause, though the other Conditions of Contract remained the same - When the State Government consciously and intentionally deleted the provision for arbitration from its contracts, it will be a travesty of justice to read another clause in the contract providing for execution of non-tendered items and the method of determination of the rates therefor, as a provision for arbitration - Orders of the High Court appointing the arbitrator set aside and applications for appointment of arbitrator dismissed. |
Judge | Hon'ble Mr. Justice R.V. Raveendran |
Neutral Citation | 2011 INSC 449 |
Petitioner | State Of Orissa & Ors. |
Respondent | Bhagyadhar Dash |
SCR | [2011] 8 S.C.R. 967 |
Judgement Date | 2011-07-04 |
Case Number | 4933 |
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