Case Note & Summary
The case involved an appeal by the Union of India against a judgment and order of the District Judge, Bhatinda, which directed the appointment of an Arbitrator under Clause 70 of a Contract. The appeal arose from a Special Leave Petition (SLP) and was heard by the Supreme Court. The core issue was whether the District Judge had the authority to direct the appointment of an Arbitrator, given that the Tender Document specified that the Engineer-in-Chief was responsible for such appointments. The Union of India contended that the District Judge's order was contrary to the provisions of the Tender Document. The Supreme Court, upon reviewing the Tender Document, found that it explicitly granted the Engineer-in-Chief the competence to appoint an Engineer Officer as Arbitrator. Consequently, the Court set aside the District Judge's order and directed the Engineer-in-Chief to appoint the Arbitrator in accordance with the Tender Document. The Court also clarified that all questions of law and fact, including limitation, would be open for argument before the appointed Arbitrator. The appeal was allowed with no order as to costs.
Headnote
A) Arbitration - Appointment of Arbitrator - Competence of Engineer-in-Chief - Arbitration Agreement - The District Judge directed the appointment of an Arbitrator contrary to the provisions of the Tender Document which specified the Engineer-in-Chief's authority to appoint an Engineer Officer as Arbitrator. The Supreme Court set aside the District Judge's order and directed the Engineer-in-Chief to appoint the Arbitrator, allowing all questions of law and fact to be argued before the Arbitrator. Held that the appointment must adhere to the terms outlined in the Tender Document (Paras Not mentioned).
Issue of Consideration
Whether the District Judge's order directing the appointment of an Arbitrator was valid under the terms of the Tender Document.
Final Decision
The Supreme Court set aside the District Judge's order and directed the Engineer-in-Chief to appoint an Engineer Officer as Arbitrator in accordance with the Tender Document, allowing all questions of law and fact to be argued before the Arbitrator. No order as to costs was made.
Law Points
- Arbitration
- Appointment of Arbitrator
- Tender Document
- Competence of Engineer-in-Chief
