NDLI: State of Gujarat Through Chief Secretary & Anr. Vs. Amber Builders

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Gujarat Public Works Contracts Disputes Arbitration Tribunal Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Arbitration Act, 1940 (10 of 1940) Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 (4 of 1992) Arbitration and Conciliation Act, 1996 (26 of 1996)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 – Issue as to whether the Gujarat Public Works Contract Disputes Arbitration Tribunal constituted u/s. 3 of the said Act has jurisdiction to make interim orders in terms of s.17 of the 1996 Act – Respondent-contractor was awarded contract for strengthening a section of National Highway under work order dtd. 31.07.07, which contained an arbitration clause – According to the contractor, he completed the work on 30.04.08 and final bill was paid – Road was damaged and the State called upon the contractor to repair the damaged portion and according to the contractor, this repair was completed – Case of the contractor is that in terms of the contract, the contractor was only liable to remove defects for period of 3 years which period ended on 30.04.11 – State issued letter dtd. 11.11.14 calling upon the contractor to pay Rs.1,09,00,092/- on the premise that the contractor had not carried out the road repair work in accordance with the contract – Challenged – Writ petition allowed by the High Court – Held: Appropriate remedy for the contractor was to approach the arbitral tribunal constituted under the 1992 Act, since that would have jurisdiction to decide whether the notice issued by the Government was legal notice and whether the Government was, in fact, entitled to recover any amount from the contractor – It would also be within the jurisdiction of the Tribunal to decide whether the contractor made out prima facie case for grant of interim relief – Insofar as the powers vested in the Arbitral Tribunal in terms of s.17 of the 1996 Act are concerned, such powers can be exercised by the Tribunal constituted under the 1992 Act because there is no inconsistency in these two Acts as far as the grant of interim relief is concerned – Merits of the case purposely not gone into – Judgments of the High Court set aside – Liberty given to the contractor to approach the Gujarat Public Works Contract Disputes Arbitration Tribunal – If the Tribunal is approached within 2 months from today, tribunal not to dismiss the claim on the issue of limitation and to decide the same on merits – Arbitration and Conciliation Act, 1996 – ss.2-43 and ss.9, 17 – Arbitration Act, 1940.Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 – ss.2(a), 3, 8(3), 9, 12, 13, 21 – Scheme of the Act – Discussed. Arbitration and Conciliation Act, 1996 – ss.9, 17 – Held: s.9 empowers the Court to grant interim measures – However, s.9(3) clearly provides that once an arbitral tribunal is constituted, the Court shall not entertain an application u/s.9(1) unless the Court comes to the conclusion that such circumstances exist which would make the remedy u/s.17, which provides for interim measures to be granted by the arbitral tribunal, not efficacious.Arbitration and Conciliation Act, 1996 – Applicability of Part I of the Act to arbitrations carried out under any other enactment – Held: Part I of the Act i.e. from s.2 to s.43 deals with Arbitration and s.2(2) clearly states that the said Part would apply to all Arbitrations which take place in India – s.2(4) makes it clear that other than ss.40(1), 41 and 43, Part I of the Act shall apply to all arbitrations even if they are carried out under any other enactment as if the arbitrations were pursuant to an arbitration agreement except insofar as the provisions of Part I are inconsistent with the other enactment or any rules made thereunder.
Judge	Hon'ble Mr. Justice Deepak Gupta
Neutral Citation	2020 INSC 16
Petitioner	State Of Gujarat Through Chief Secretary & Anr.
Respondent	Amber Builders
SCR	[2020] 1 S.C.R. 779
Judgement Date	2020-01-08
Case Number	8307

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State of Gujarat Through Chief Secretary & Anr. Vs. Amber Builders

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