IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
Civil Revision No.4210 of 2005
Date of decision:20.05.2009
Punjab Water Supply and Sewerage Board,
Chandigarh and others ...Petitioners
versus
M/s Shiva Enterprises ...Respondent
CORAM: HON'BLE MR. JUSTICE K.KANNAN
Present: Mr.Binderjit Singh, Advocate, for the petitioners.
None for the respondent.
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1. Whether reporters of local papers may be allowed to see the
judgment ?
2. To be referred to the reporters or not ?
3. Whether the judgment should be reported in the digest ?
K.Kannan, J.(Oral)
1. The revision is against the petition filed by the
defendant in the suit for staying the proceedings and for reference to
arbitration. The fact that the agreement between the parties contained an
arbitral clause, is not denied. The petition was that the suit related to the
recovery of amount for extra work required to be done and therefore the
arbitral clause could not be invoked. This objection was sustained by the
trial Court and the defendant is in revision against this order.
2. I have read clause 25 which contains an arbitral clause
which reads as follows:-
” i) If any dispute or difference of any kind whatsoever
shall arise between the PWSSB its authorized
Civil Revision No.4210 of 2005 -2-representative and the contractor in connection with
or arising out of this contract or the execution of
work thereunder.
ii) ………………………………..
iii) ………………………………..
iv) If the Engineer-in-charge fails to convey his decision
within a period of sixty days after being requested as
aforesaid the contractor may within further sixty days
of the expiry of the first sixty days from the date on
which the said request was made by the contractor
refer the dispute for arbitration as hereinafter
provided.
v) All disputes or differences in respect of which the
decision is not final and conclusive shall at the
request of either party made in a communication sent
through registered A.D. post be referred to the sole
arbitration of the Superintending Engineer of the
circle concerned in the PWSSB acting as such at the
time of reference unless debarred from acting as an
Arbitrator by an order of the MD, PWSSB/Court, in
which event, the MD shall appoint any other technical
officer not below the rank of Superintending Engineer
to act as an arbitrator on receipt of a request from
either party.
vi) ………………………………..
vii) ………………………………..
viii) ………………………………..
ix) The provisions of the Indian Arbitration Act 1940 or
any other statutory enactment thereunder or
modification thereof and for the time being in force
shall apply to the arbitration proceedings under this
clause.”
Civil Revision No.4210 of 2005 -3-
3. In view of the specific provisions relating to
resolution of dispute through arbitration, it shall be impermissible for the
trial Court to allow the proceedings to continue. The petition filed by the
defendant before the Court ought to have therefore allowed staying the
proceedings and referring the matter to the Arbitrator who shall be duly
appointed as per the terms of the agreement. The order of the Court
below is under the circumstances set aside and the proceedings are
directed to be stayed. Having regard to the fact that the dispute has been
brought at the instance of the plaintiff, the defendant shall apply the
arbitration clause and appoint an Arbitrator in the manner provided under
the agreement and proceed with resolution of the dispute before the
Arbitrator in the manner provided.
4. The Civil Revision is allowed in the above terms.
(K.KANNAN)
JUDGE
20.05.2009
sanjeev