Case Note & Summary
The dispute arose from a contract between the Haryana State Agricultural Marketing Board and the appellant for constructing an office building. The agreement specified that the Superintending Engineer of the Marketing Board would act as the sole Arbitrator in case of disputes. Following a dispute regarding the construction completion, the respondent appointed Shri D.P. Gupta as Arbitrator on 11th March, 1983. However, on 4th April, 1984, the Chairman of the Marketing Board attempted to revert him to his parent department. Despite this, on 6th April, 1984, Shri Gupta issued an award in favor of the appellant. The appellant sought to have this award made a rule of the court, but the High Court later set aside the award, claiming that the Arbitrator had lost jurisdiction due to the reversion order. The Supreme Court was then asked to determine whether the Arbitrator had jurisdiction at the time of the award. The Court found that the State Government's order on 24th May, 1984, which confirmed Shri Gupta's continued deputation, effectively nullified the earlier reversion order. The Court noted that Shri Gupta was paid by the Marketing Board for April 1984, indicating he remained in his position. Consequently, the Supreme Court allowed the appeal, restored the Trial Court's judgment, and affirmed the validity of the award.
Headnote
A) Arbitration Law - Jurisdiction of Arbitrator - Validity of Award - Arbitration Act, 1940, Sections 14 and 30 - The court held that the Arbitrator, Shri D.P. Gupta, retained jurisdiction to make the award despite an order reverting him to his parent department, as the State Government confirmed his deputation post after the reversion order. The court found that the order of the State Government nullified the earlier reversion, establishing that the Arbitrator was still in position when the award was made (Paras 852A-D).
Issue of Consideration
Whether the Arbitrator had jurisdiction to make the award on 6th April, 1984 despite being reverted to his parent department on 4th April, 1984.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's order, and restored the Trial Court's judgment, affirming the validity of the arbitration award.
Law Points
- Arbitration jurisdiction
- appointment of arbitrator
- validity of award
- deputation of government officer
