{"id":123183,"date":"2010-12-02T00:00:00","date_gmt":"2010-12-01T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/state-vs-associated-on-2-december-2010-2"},"modified":"2016-09-17T16:26:47","modified_gmt":"2016-09-17T10:56:47","slug":"state-vs-associated-on-2-december-2010-2","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/state-vs-associated-on-2-december-2010-2","title":{"rendered":"State vs Associated on 2 December, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">State vs Associated on 2 December, 2010<\/div>\n<div class=\"doc_author\">Author: Ks Jhaveri,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nFA\/1374\/1990\t 4\/ 4\tJUDGMENT \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nFIRST\nAPPEAL No. 1374 of 1990\n \n\nWith\n\n\n \n\nFIRST\nAPPEAL No. 369 of 1991\n \n\nTo\n\n\n \n\nFIRST\nAPPEAL No. 370 of 1991  \n \n\n\n \n\n \nFor\nApproval and Signature:  \n \nHONOURABLE\nMR.JUSTICE KS JHAVERI\n \n \n=========================================================\n\n\n\n\t \n\t\t  \n\t\t \n\t\t  \n\t\t\t \n\t\t\t\t \n\n1\n\t\t\t\n\t\t\t \n\t\t\t\t \n\nWhether\n\t\t\t\tReporters of Local Papers may be allowed to see the judgment ?\n\t\t\t\n\t\t\n\t\n\n\n\t \n\t\t  \n\t\t \n\t\t  \n\t\t\t \n\t\t\t\t \n\n2\n\t\t\t\n\t\t\t \n\t\t\t\t \n\nTo\n\t\t\t\tbe referred to the Reporter or not ?\n\t\t\t\n\t\t\n\t\n\n\n\t \n\t\t  \n\t\t \n\t\t  \n\t\t\t \n\t\t\t\t \n\n3\n\t\t\t\n\t\t\t \n\t\t\t\t \n\nWhether\n\t\t\t\ttheir Lordships wish to see the fair copy of the judgment ?\n\t\t\t\n\t\t\n\t\n\n\n\t \n\t\t  \n\t\t \n\t\t  \n\t\t\t \n\t\t\t\t \n\n4\n\t\t\t\n\t\t\t \n\t\t\t\t \n\nWhether\n\t\t\t\tthis case involves a substantial question of law as to the\n\t\t\t\tinterpretation of the constitution of India, 1950 or any order\n\t\t\t\tmade thereunder ?\n\t\t\t\n\t\t\n\t\n\n\n\t \n\t\t  \n\t\t \n\t\t  \n\t\t\t \n\t\t\t\t \n\n5\n\t\t\t\n\t\t\t \n\t\t\t\t \n\nWhether\n\t\t\t\tit is to be circulated to the civil judge ?\n\t\t\t\n\t\t\n\t\n\n \n\n \n=========================================================\n\n\n \n\nSTATE\nOF GUJARAT - Appellant(s)\n \n\nVersus\n \n\nASSOCIATED\nBUSINESS CORPN. &amp; 1 - Defendant(s)\n \n\n=========================================================\n\n\n \n\nAppearance\n: \nMR NEERAJ\nSONI AGP for Appellant(s) : 1, \nMR MG NAGARKAR for Defendant(s) :\n1, \nNone for Defendant(s) :\n2, \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE KS JHAVERI\n\t\t\n\t\n\n \n\nDate\n: 02\/12\/2010 \n\n \n\nORAL\nJUDGMENT<\/pre>\n<p>\tAll<br \/>\nthese appeals involve common questions on law and facts and<br \/>\ntherefore, they are disposed of by this common judgment.\n<\/p>\n<p>1.<br \/>\n\tThe question that has arose for my consideration in these appeals is<br \/>\nwhether the assent of a party to a dispute arising out of a contract<br \/>\ncontaining express provision of an arbitration clause is necessary<br \/>\nwhen a reference of the dispute is to be made to arbitration.\n<\/p>\n<p>2.\tThe<br \/>\nfacts in brief are that the appellant-State and the<br \/>\nrespondent-Company had entered into a contract agreement for carrying<br \/>\nout certain works in an irrigation project. While the work was in<br \/>\nprogress, dispute arose between the parties, which was referred to<br \/>\nthe competent authority. However, when the dispute could not be<br \/>\nsettled, it was referred to an Arbitrator, as per the provisions of<br \/>\nthe contract agreement. The Arbitrator published his award in the<br \/>\narbitration case. Thereafter, applications were filed before the<br \/>\nCourt below praying to pass a decree in terms of the said award. The<br \/>\nCourt below, after appreciating the documents on record, passed a<br \/>\ndecree in terms of the award of the Arbitrator except the claim<br \/>\nregarding interest.\n<\/p>\n<p>3.\tThe<br \/>\nappellant-State has challenged the judgment and decree passed by the<br \/>\nCourts below mainly on the ground that the appellant-State had not<br \/>\ngranted its assent for appointment of the Arbitrator as named by the<br \/>\nContractor and also that the award passed by the Arbitrator is<br \/>\nex-parte inasmuch as the appellant-State was not heard.\n<\/p>\n<p>4.\tHeard<br \/>\nlearned counsel for the respective parties and perused the documents<br \/>\non record. The appointment of an Arbitrator could be said to be<br \/>\nillegal if the provisions of Clause nos.51 &amp; 52 of the contract<br \/>\nagreement entered into between the parties have not been duly<br \/>\nfollowed. In the present case, I find that the said two provisions of<br \/>\nthe contract agreement have been duly followed while appointing the<br \/>\nArbitrator.\n<\/p>\n<p>5.\tIf<br \/>\nthe appellant-State had grievance against the said appointment, then<br \/>\nit had the remedy to move appropriate application before the<br \/>\ncompetent Court u\/s.5 or 11 of the Arbitration Act at the relevant<br \/>\npoint of time. However, no such steps were taken by the<br \/>\nappellant-State. Therefore, at this stage, it does not lie in the<br \/>\nmouth of the appellant to say that the appointment of the Arbitrator<br \/>\nis bad in law or illegal.\n<\/p>\n<p>6.\tConsidering<br \/>\nthe facts of the case, it would be relevant to refer to a decision of<br \/>\nthe Apex Court in the case of <a href=\"\/doc\/1676482\/\">Banwari Lal Kotiya v. P.C.<br \/>\nAggarwal, AIR<\/a> 1985 S.C. 1003. In that case, it has been held<br \/>\nthat where the arbitration agreement conforms to the definition given<br \/>\nin Section 2(a) of the Arbitration Act, the party desiring<br \/>\narbitration can straightway approach the arbitrator\/s and therefore,<br \/>\nresort to Section 20 of the said Act is unnecessary; and the aspect<br \/>\nthat differences or disputes actually arose subsequently would be<br \/>\ninconsequential because the arbitration agreement, as defined in<br \/>\nSection 2(a), covers not merely present but, future differences also.<br \/>\nAccordingly, it was held that the arbitration clause contained in the<br \/>\nContract Notes read with the relevant Bye-laws of the Delhi Stock<br \/>\nExchange was not a bare arbitration agreement but was clearly an<br \/>\narbitration agreement as defined in S. 2(a) and resort, therefore, to<br \/>\nS. 20 was not necessary.\n<\/p>\n<p>6.1\tIn<br \/>\nthis case, the arbitration clause contained in the contract agreement<br \/>\nentered into between the parties was clearly an arbitration agreement<br \/>\nfalling within the definition of S. 2(a) of the said Act. Hence, the<br \/>\nconsent of the appellant-State was not necessary before making the<br \/>\nreference of the dispute to the Arbitrator.\n<\/p>\n<p>7.\tIn<br \/>\nview of the above discussion, I find no merits in the present<br \/>\nappeals. Hence, the appeals are dismissed. No orders as to costs.\n<\/p>\n<p>[K.\n<\/p>\n<p>S. JHAVERI, J.]\t<\/p>\n<p>Pravin\/*<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court State vs Associated on 2 December, 2010 Author: Ks Jhaveri,&amp;Nbsp; Gujarat High Court Case Information System Print FA\/1374\/1990 4\/ 4 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD FIRST APPEAL No. 1374 of 1990 With FIRST APPEAL No. 369 of 1991 To FIRST APPEAL No. 370 of 1991 For Approval and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-123183","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>State vs Associated on 2 December, 2010 - Free Judgements of Supreme Court &amp; 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