Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration: Termination of contract-Termination for non-completion of work on basis of engineer's certificate-Reference of the dispute of termination to arbitration-Arbitrator holding wrongful termination-High Court holding arbitrator has no jurisdiction to decide the issue of termination of contract, being an excepted matter-Validity of-Held, on facts, the arbitrator has jurisdiction to decide the issue of the validity of termination of contract- Arbitration Act, 1940-Sections 30 & 33.Respondent-Trust terminated the contract given to appellant-contractor for non-completion of the contracted work on the basis of an Engineer's certificate. The dispute of the termination of contract was referred to arbitration. The arbitrator held in favour of the appellant on the ground of wrongful termination of contract by the respondent. The respondent filed an application before High Court challenging the award on the ground of non-arbitrability of the issue of termination of the contract by the arbitrator. The Single Judge dismissed the application of the respondent. The Division Bench of the High Court set aside the award of the arbitrator on two grounds-(i) that the question of wrongful termination of the contract was an excepted matter and hence not arbitrable; and (ii) that the arbitrator has failed to exercise the jurisdiction in not considering the counter claim of the respondent. In appeal, the appellant contended that the respondent never objected to the arbitrability of the issue of the validity of the termination of the contract during arbitration proceedings; that the Engineer could only certify the quality or measurement of the work done; and that the arbitrator and not the Engineer can adjudicate as to who caused the breach of the contract. The respondent contended that the arbitrator had no jurisdiction to adjudicate the issue of the validity of the termination of the contract as per the clauses of the Information and Instruction to Tenders; that the issue is an excepted matter and therefore not arbitrable; and that the contract was terminated on the basis of the Engineer's certificate stating non-completion of the work by the appellant. |
Judge | Honble Mr. Justice Y.K. Sabharwal |
Neutral Citation | 2002 INSC 48 |
Petitioner | J.g. Engineer`s Pvt. Ltd. |
Respondent | Calcutta Improvement Trust And Anr. |
SCR | [2002] 1 S.C.R. 599 |
Judgement Date | 2002-01-25 |
Case Number | 689 |
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