Citation : 2011 Latest Caselaw 6343 Del
Judgement Date : 23 December, 2011
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ IA No.9364/1991, I.A 9046/2010 & CS(OS) No.3768A/1991
% Date of Decision: 23.12.2011
M/s.Gursharan Singh .... Petitioner
Through Mr.B.K.Dewan and Mr. Bhavesh Kumar
Sharma, Advocates.
Versus
M/s.Bharat Petroleum Corpn. Ltd & ors. .... Respondents
Through Mr.Manoj Singh, Advocate, Mr. Anil K.
Batra and Mr. Prince Kumar, Advocates
for Respondent no.1/Objector
CORAM:
HON'BLE MR. JUSTICE ANIL KUMAR
ANIL KUMAR, J.
*
1. The petitioner was awarded work for construction of road at LPG plant
at Lucknow and an agreement dated 12th January, 1988 was executed
between the parties. The work was to be completed within four months and
the stipulated date of completion was 14th June, 1988, however, the work
was completed on 21st June, 1988. The value of the work awarded to the
petitioner was Rs.13,64,400/-, however, the scope of work was increased
and work could be completed by the petitioner by 25th November, 1988.
2. In respect of work, construction of road at LPG plant at Lucknow
disputes arose and the petitioner invoked clause 19 of the agreement which
has an arbitration Agreement which is as under:-
"19. Arbitration:- In the event of any dispute or difference at any time arising between the parties here to touching the construction, meaning or effect of these presents or the rights or liabilities of the parties hereunder or any matter arising out of the same or connected therewith, the same shall except where otherwise specifically agreed, be referred, for arbitration in India to a single arbitrator if the parties agree, upon one or otherwise to two arbitrators, one to be named by each party and in the event of the arbitrators differing, to an umpire to be appointed by the arbitrators in writing before entering on the reference. Any such reference shall be deemed to be a reference to arbitration within the meaning of the Arbitration Act, 1940 and the rules made thereunder and to any statutory modification or re-enactment thereof for the time being in force. The decision of the arbitrator(s) and tailing an agreed decision by him/them, the decision by the umpire, shall be final and conclusive and binding on both parties. Any proceedings under the reference to the Arbitrator(s) or umpire shall be held only at ........"
3. The arbitration agreement contemplated two arbitrators one to be
named by each party and, therefore, petitioner appointed Sh.P.L.Saluja,
B.Tech, Civil Engineer as an arbitrator whereas the Respondent no.1 Bharat
Petroleum Corpn. Ltd appointed Sh.P.P.Darundkar, Technical Ex-Chairman
and Managing Director, National Building Construction Corporation as
another arbitrator.
4. Before the arbitrators the parties filed their claims, evidence on
affidavit in support of their claims. A number of hearings took place before
the arbitrators. The parties also submitted written submissions. Arbitrators,
Respondent nos. 2 & 3 also visited the site at Lucknow and examined the
disputes with reference to site, relevant drawings and other documents.
After the hearing the parties were directed to submit the requisite stamp
papers for making and publishing the award and thereafter, the award dated
25th November, 1991 was given by the arbitrators. The arbitrators awarded
Rs.1,07,301.50/- towards final bill recovered; Rs.60,000/- for laying of
stone soling of 230 mm; Rs.36,000/- for laying of stone soling 100 mm,
Rs.2,65,380/- for additional work; Rs.23,300/- on account of excess
expenditure due to abnormal variation. The arbitrators, however, declined to
award interest with effect from 25th November, 1988 and cost of arbitration
proceedings. The Respondent no.1 had also claimed Rs.10,16,030/- towards
the estimated cost of repairs, however, the arbitrators declined the claim of
the Respondent no.1.
5. After the award was given the petitioner filed petition under Section 14
of Arbitration Act, 1940 seeking direction to the arbitrators, Respondent
Nos.2 & 3 to file the award along the depositions made by the parties. On
service of notice of filing of award the Respondent no.1 filed objections under
Section 33 read with 16 & 33 of Arbitration Act being IA No.9364/1991
contending inter-alia that under the agreement, additional work beyond the
scope and sweep of the agreement was not arbitrable. It is contended that
the work had been completed on 21st June, 1988 and a final bill was
prepared.
6. According to the objector/Respondent no.1 on 28th April, 1989 a
meeting was held between the parties after the completion of work by the
petitioner and record notes were prepared. Relying on the record notes it is
contended that instead of removing the defects in workmanship, the
petitioner had agreed for deduction of Rs.1,07,301.50/- and accordingly a
full and final settlement of all the claims of the petitioner was arrived at and
Rs.2,05,724.01/- was received by the petitioner which was accepted by the
petitioner by letter dated 10th July, 1989. The objector/Respondent no.1
contended that in the said letter dated 10th July, 1989 the petitioner
categorically and specifically stated as under:-
"I do not have any further claim."
7. The objector/respondent no.1 has asserted that after receipt of
amount in full and final settlement, the petitioner had raised frivolous
claims which are arbitrated by two arbitrators who passed their non
speaking award dated 25th November,1991. According to the Respondent
no.1/objector seven claims were raised by the petitioner and the Respondent
no.1 also raised the counter claims, however, the amounts as indicated
hereinabove were awarded to the petitioner and the claims of the
Respondent no.1 were dismissed. The objector/Respondent no.1 has
contended that the arbitrators have passed an award on matters which were
not arbitrable being accepted matters or beyond the scope of the contract. It
is also asserted that the award is based on no evidence and it is for those
disputes which had been fully and finally settled by the parties. The further
plea of the Respondent no.1/objector is that after the full and final
settlement of disputes, the matter could not be referred to the arbitrators
nor the arbitrators could award any amount. The Respondent no.1/objector
relied on Associated Engineering v. Government of Andhra Pradesh (1994) 4
SCC 1993; New India Civil Erections Pvt Ltd v. ONGC, (1997) 11 SCC 75;
West Bengal Industrial Infrastructure Development Corporation v. Star
Engineering, AIR 1987 Col.126 and State of Jammu and Kashmir and Anr v.
Dev Dutt Pandit, AIR 1999 SC 3196 and 159(2009) DLT 534, Polytron &
Fragrance Industries (P) Ltd v. National Insurance Co.Ltd. in support of its
contention.
8. The objector/Respondent no.1 also contended that even in a non
speaking award the Court can look into the contract between the parties if
the arbitrators have fallen into jurisdictional error and relied on
T.N.Electricity Board v. Bridge and Tunnel Constructions and Ors, (1997) 4
SCC 121. The objector/respondent no.1 also contended that the issue of
lack of jurisdiction of the arbitrators in respect of additional work beyond
the contract can be raised for the first time in a petition under Section 33 of
the Arbitration Act, 1940 as the challenge to the arbitrators jurisdiction goes
to the root of the matter, even if not taken during the arbitration
proceedings and does not bar the objector/respondent no.1 from taking the
same for the first time in the Court. The Respondent no.1 relied on
Jagannath Kapoor and Anr v. Premia Credit and Settlement Corporation Pvt
Ltd, AIR 1973 Allahabad 49; Khardah Company Ltd v. Raymond and
Company, AIR 1962 SC 1810.
9. The learned counsel for the parties have been heard in detail on
various dates and the record of the Arbitration perused. The learned counsel
for the Respondent no.1 has contended that the Arbitrators could not award
any amount in respect of which the parties had arrived at full and final
settlement. It is contended by the learned counsel that the plea of the
petitioner is not that the full and settlement was arrived under pressure or
petitioner agreed for full and final settlement on account of any coercion of
any fraud played upon the petitioner.
10. Whether there had been a full and final settlement between the parties
pursuant to which the amount which was due to the petitioner was paid and
consequently no dispute survived and the arbitrators could not award any
amount to the petitioner? The Respondent no.1/objector has also relied on
159 (2009) DLT 534, Polytron & Fragrance Industries (P) Ltd v. National
Insurance Co.Ltd; 2008 VI AD (Delhi) 572, R.K.Silk Mills (India) Ltd v.
National Insurance Company Ltd; 1995 Supp (3) SCC 324, Nathani Steels
Ltd v. Associated Constructions and 1994 Supp (3) SCC 126, P.K.Ramaiah
and Company v. Chairman and Managing Director, National Thermal Power
Corpn. in support of his contention.
11. The learned counsel contends that the settlement was arrived at
between the petitioner and the Respondent no.1/objector on 28th April, 1989
and the terms of the settlement including the deduction for which the
petitioner contractor had agreed and the amount payable to the petitioner
was specifically stipulated in the settlement dated 28th April, 1989. The
record note of 28th April, 1989 is as under:-
1. The above job was awarded to M/s.Gursharan Singh as per Agreement No.AEM/87/102 dated 12.01.88.
2. The job was started on 15.02.88 and was completed on 25.11.88. Bill No.1126 dated 12.01.89 for Rs.18,33,954.60 was submitted, which included drains, roads, earthfilling etc. out of which black carpet was of Rs.4,03,261.44 (@ 48/m2 for an area 8401=28 m2) and quality complaint was found in this item only. On measurement at site, an average thickness of the black carpet was found varying 40mm downwards.
3. The contractor has been asked to correct the thickness to which he expressed inability and has proposed for a prorate deductions of the carpet thickness as below:-
4.
(i). For average 40 mm thick carpet for an area of 6082.80m,
for 12mm thick carpet which comes to
Rs.67,378.70(48/52x12x6082.80)
(ii). For average 26 mm thick carpet for an area of 166.3.45
m2, a deduction for balance 26 mm thick carpet which
comes to Rs.39,922.80x(48/52x26x1663.45)
(iii). Thus, total deduction is of Rs.1,07,301.50.
(iv). The balance area of 655.03 m2 is having correct carpet
thickness of 52 mm.
(v). The contractor had proposed a deduction of
Rs.1,07,301.50 against above bill and to treat it as the
final bill and confirms that he has no further claims beyond the quantities mentioned in the bill.
(vi). The contractor proposed to release the balance payable amount of Rs.1,37,911.10 with details as below:-
Total amount of bill: Rs.18,33,954.63
Say Rs.18,33,954.60
Less already paid : Rs.15,12,000.00
Balance Rs. 3,21,954.60
Less Retention Money
(as per Agreement
Clause) Rs. 63,349.00
Less 2% Income Tax Rs. 6,439.00
Less 8% S/C on I.Tax Rs. 515.00
Less 2% U.P.S.Tax Rs. 6,439.00
Payable Rs. 2,45,212.60
DEDUCTIONS Rs.1,07,301.50
Net Payable after
Deductions Rs.1,37,911.10
6. The contractor has confirmed that there will be no further claims against the aforesaid contract for which net payable is Rs.1,37,911.50.
H.P.GUPTA BRIJ MOHAN For BHARAT PETROLEUM .FOR M/S GURSHARAN SINGH CORPN.LTD
12. According to the learned counsel for the Respondent no.1/objector,
the petitioner had confirmed that he would have no further claim against
the aforesaid contract which was as per agreement No.AEM/87/102 dated
12th January, 1988 after payment of an amount of Rs.1,37,911.50/-. The
learned counsel has also relied on the letter dated 10th July, 1989 sent on
behalf of Respondent no.1/objector to the petitioner forwarding a cheque
No.052086 dated 7th July, 1989 for an amount of Rs.2,05,724.13/- in full
and final settlement of the amount payable to the petitioner for the works
pertaining to road/drain at LPG plant, Lucknow against agreement
No.AEM/87/102 dated 12th January, 1988. The said letter also has an
endorsement regarding the receipt of cheque pursuant to the settlement
arrived at between the parties. The learned counsel, Mr.Manoj Singh has
also referred to letter dated 20th July, 1989 by the Respondent no.1 to the
petitioner categorically refuting the allegations made by the petitioner in its
letter dated 10th July, 1989 demanding interest at 18% per annum and also
claiming an amount of Rs.5,19,774.47/- even after receiving an amount of
Rs.2,05,724.13/-. According to the learned counsel by letter dated 20th July,
1989 it was communicated to the petitioner that after receiving an amount
of Rs.2,05,724.13/- nothing is due from Respondent no.1 to the petitioner in
terms of joint memorandum which was signed on 28th April, 1989. The
learned counsel also contends that after the settlement there could not be
further claims as has been allegedly raised by the petitioner on 19th May,
1989 which was rejected by letter dated 19th June, 1989 by the Respondent
no.1 and consequent thereto the amount was accepted on 10th July, 1989.
13. The learned counsel for the petitioner has refuted the plea of the
Respondent no.1 that the dispute were settled between the parties and the
amounts were paid in full and final settlement as this plea was not raised by
the Respondent no.1 before the arbitrators during the arbitration
proceedings. The learned counsel for the Respondent no.1 has, however,
relied on the reply filed on behalf of Respondent no.1/objector dated 25th
March, 1990 categorically stipulating that the claim of the petitioner are
false, fabricated and vexatious as in terms of record notes dated 28th April,
1989 after deducting an amount of Rs.1,35,911.10 which was admitted by
the petitioner, the balance amount with the other amounts which were due
to the petitioner were paid on 10th July, 1989 which amount was accepted
by the petitioner by making an endorsement on the letter dated 10th July,
1989 and consequently the amount has been paid in full and final
settlement and despite the plea specifically taken by the Respondent
no.1/objector, the learned arbitrators have awarded an amount of
Rs.1,07,301.50/- towards final bill recovery; Rs.60,000/- towards laying of
stone soling 230 mm; Rs.36,000/- for laying of stone soling 100 mm;
Rs.2,05,380/- towards additional work and an amount of Rs.23,318/-
towards excess expenditure due to abnormal variations besides simple
interest @ 13% per annum to the petitioner on account of non-payment of
the amounts awarded within one month from the date of the award dated
25th November, 1991.
14. In Nathani Steels Ltd (Supra) it was held by the Supreme Court that
once the disputes by and between the parties under a contract are amicably
settled by way of final settlement, one of the party to the settlement then
cannot spurn it on the ground that it was on account of mistake and cannot
proceed to invoke arbitration clause. The Supreme Court had held that the
sanctity of the contract and the settlement would be wholly lost and one
party cannot be allowed to take benefit under the settlement and then spurn
it. In the circumstances, the Supreme Court had allowed the appeal and had
set aside the order of High Court holding that a party could invoke the
arbitration clause despite arriving at a final settlement.
15. Similarly, in P.K.Ramaiah and Company (Supra) it was held by the
Apex Court that once a party acknowledges settlement and also accepts
measurement and receives the amount in full and final settlement of its
claims, then there would be accord and satisfaction and no arbitrable
disputes will exist for reference to arbitration. In R.K.Silk Mills (India) Ltd
(Supra) the Court had declined to appoint an arbitrator in a petition under
Section 11(6) of the Arbitration & Conciliation Act, 1996 as the difference
between the parties with regard to liability as well as to the quantum of loss
were crystallized and consequently no further disputes remained with regard
to that. It was held that the dispute which could be referred to arbitration
could be only one which pertained to the quantum to be paid under the
policy and since the quantum had been crystallized there did not remain
any dispute or difference between the parties and, therefore, the petition
under Section 11(6) of the Arbitration & Conciliation Act was dismissed. The
learned Single Judge in R.K.Silk Mills (India) Ltd (Supra) had relied on
M/s.P.K.Ramaiah and Company and M/s.Nathani Steels Ltd.
16. In Polytron & Fragrance Industries (P) Ltd (Supra) it was held that
acceptance of amount towards full and final settlement of the claim, even if
it was under any duress or coercion, will not leave any dispute for
arbitration. The Court had held that even if it is contended by one of the
parties that full and final settlement of claim was under duress or coercion,
this will not be a dispute arbitrable under the arbitration clause as the
arbitral Tribunal is not the forum to adjudicate such a dispute and the only
remedy with such a party who could challenge the settlement of claims on
account of duress and coercion was to raise it in some other proceedings
and not before the arbitrators. It was held that if such a plea is allowed to be
taken after acceptance of amount in full and final settlement, the sanctity of
settlement would be wholly lost.
17. The petition under Section 14 of the Arbitration Act was filed on 13th
July, 1994 seeking a direction to the Respondent no.1 Nos.2 & 3
Sh.P.P.Dharwadker and Sh.P.L.Saluja arbitrators to file the award along
with the depositions made by the parties. The objections to the award dated
25th November, 1991 were filed as IA No.9364/1991. The award filed by the
arbitrators Respondent no.1 Nos.2 & 3 was taken on record on 15th
January, 1992 and since then the objections have been pending.
18. The objections were initially filed as IA No.9364/1991, however, that
application was not available on records and as per the directions of this
Court, fresh objections were filed being IA No.9365/1992. However, by
order dated 11th April, 1994 it was held that since IA No.9364/1991 is on
record, therefore, IA No.9365/1992 requires no order and the issues were
framed on 11th April, 1994.
19. Thereafter, by order dated 15th March, 1999 the objections were
dismissed in default and the award was made rule of the Court. An
application IA No.3873/1999 was filed for setting aside the decree passed,
on dismissal of the objections which was allowed by order dated 16th
November, 2000 and order dated 15th March, 1999 was recalled and the
objections were restored to its original number.
20. On 20th February, 2004 the Joint Registrar passed the order to place
the petition before the Court as the value of the matter for the purpose of
pecuniary jurisdiction was noticed to be less than Rs.20 lakhs. Thereafter,
though the matter was placed before the Court, however, none of the parties
pointed out that the jurisdiction value as noticed by the Joint Registrar was
less than Rs. 20 lakhs. Rather the question of jurisdiction was not
considered and on the contrary the arguments were advanced on different
dates and the matter has been adjourned from time to time in detail.
21. After considerable arguments on various dates, the petitioner
apprehended that the objections may be allowed and award may be set
aside, he filed and IA 9046 of 2010 contending that the valuation of the suit
is hardly Rs.4.6 lakhs and on account of enhancement of pecuniary
jurisdiction of the suits of the value of Rs.20 lakhs or less being transferred
to the respective District Courts which had escaped the notice of the
Registry and therefore, the suit be transferred to the District Court and/or
alternatively the matter be assigned to the original jurisdiction of this Court.
22. The application has been contested by the respondent no.1
contending that the suit is within the pecuniary jurisdiction of this Court
and the application is nothing but an attempt on the part of the petitioner to
delay the disposal of the suit. It was also contended that the total amount
involved in the present suit is above Rs.20 lakhs. In order to substantiate
its plea that the amount involved in the suit is above 20 lakhs, the
respondent no.1 contended that the award of the arbitrator in favour of
plaintiff is for Rs. 4,31,999.50/-. The counter claims of the respondent no.1
are for Rs.10,16,030/- besides interest at the rate of 13% per annum with
effect from 25th December, 1991 over the principal amount of
Rs.4,31,999.50/- amounting to Rs.10,67,037.53/- and, therefore, the total
amount involved is Rs.25,15,067/-. Therefore, it was prayed that the
application for transfer of the suit to the district Court be dismissed.
23. Yet another application being IA No.11259/2010 was filed on behalf of
plaintiff under Section 24 of the Code of Civil Procedure for transfer of case
to District Court on account of pecuniary jurisdiction being Rs.16 lakhs. The
petitioner/applicant contended that the valuation of the present suit is
Rs.16 lakhs. Since the jurisdiction value of the High Court has been
enhanced on account of Delhi High Court (Amendment) Act, 2003 therefore
the petition should not be tried by the Hon'ble High Court.
24. The I.A. No. 11259 of 2010 was later on withdrawn by the petitioner in
view of pendency of I.A 9046/2010 seeking same relief i.e the petition be
transferred to District Court as the jurisdiction of the matter is less than
Rs.20 lakhs. The application being I.A no. 11259 of 2010 was dismissed as
withdrawn by order dated 27th August, 2010.
25. The learned counsel for the plaintiff in support of his plea for transfer
of the present petition has also relied on the decision dated 5th September,
1984 in Suit No.491A/1980 titled as Somnath Verma v. Union of India &
Ors to contend that since the value of the petition is less than Rs.20 lakhs,
therefore, the suit should be transferred to the District Court.
26. The learned counsel for the respondent no.1 has opposed the plea of
transfer at this stage as the objections are pending for almost two decades
and has relied on 127 (2006A) DLT 300, Aviat Chemicals Pvt Ltd & Anr v.
Magna Laboratories (Gujarat); 2009(157) DLT 41, Sunil Dutt & Anr v. Bhag
Singh and 2006(33) PTC 387, Hawkins Cookers Ltd v. Citizen Metal
Industries (India). The learned counsel also contended that since the
arguments on objections have already been almost concluded at which stage
the application has been filed merely with a view to further delay the
disposal of the case. It is further contended that it is a fit case where the
Court should exercise its power under section 24 of the Code of Civil
Procedure to transfer the suit to the High Court, even if it comes to the
conclusion that the petition is liable to be transferred to District Court on
account of valuation of the matter being less than Rs.20 lakhs.
27. This Court has heard the learned counsel for the parties in detail on
this aspect also. In Sunil Dutt (Supra) this Court had held that the High
Court under Section 24 of CPC has powers to call any suit from the lower
Court to itself. In exercising powers under Section 24 of the Code of Civil
Procedure, the High Court withdraws the suit from the civil Court and
entertains the same and in such a case, it will not be a case of return of
plaint where the power is exercised under Section 24 of the Code of Civil
Procedure. In the instant case relied on by the respondent no.1 after the
trial was over and the case was at the stage of arguments, relying on the
statement of one witness deposing that the suit property was Rs.30 lakhs
and because Civil Judge could try the suits only up to pecuniary jurisdiction
of Rs.3 lakhs, therefore, the District Judge had forwarded the same to the
High Court on the original side. After the case was received on the original
side, a plea was taken on behalf of the defendant that the plaint has been
returned under Order 7 Rule 10 of the Code of Civil Procedure, therefore, de-
novo trial was claimed by the defendant. This plea was repelled by the Court
holding that when the power is exercised under Section 24 of Code of Civil
Procedure then it is not a case of return of plaint and the defendant could
not ask for de-novo trial. It was also held that a judgment or an order can be
set aside on the ground of lack of pecuniary jurisdiction only if it has
resulted into a failure or miscarriage of justice. Since the case was at the
stage of final arguments and evidence of both the parties had already been
recorded it was held that no prejudice would be caused to the defendant, if
the suit is continued at the level it was received and, therefore, the case
continued from the stage at which it was received in the High Court.
28. In Hawkins Cookers Ltd (Supra) the suit was instituted in the High
Court and after several proceedings, on account of increase in pecuniary
jurisdiction the case was transferred from the High Court to the District
Civil Court. Pursuant to an application for amendment, the value of the suit
was enhanced for the purpose of pecuniary jurisdiction to Rs.21 lakhs and
the file was sent by the District Judge to the High Court. After the suit was
sent on account of increase of jurisdictional value of the suit by District
Judge to the High Court, the plea was taken that it amounted to return of
the plaint. This Court, however, had held that return of the plaint for want
of jurisdiction whether pecuniary or territorial cannot be equated to the
transfer of the suit or proceedings either by virtue of Section 24 of CPC or
owing to any other statutory change. The Court had also observed that in
civil cases where suits had been transferred from the High Curt to the
District Court and the valuation of the suit was revised and the plaintiff
approached the Court under Section 24 of the CPC and the order of the
District Judge to send the file or transmit to the High Court, was
assumption and exercise of jurisdiction under Section 24 of CPC of the High
Court to transfer the suit to itself. Therefore, the plea that this tantamount
to return of the plaint was repelled and the suit was restored to the original
number.
29. In Aviat Chemicals Pvt Ltd & Anr (Supra) the suit was transferred on
account of increase in pecuniary jurisdiction of the Court and the
amendment of the plaint was sought to claim higher amount of damages
and to increase the value of suit for purpose of Court fees and jurisdiction.
The Single Judge of this Court had held that provisions of Section 24(5) of
CPC and Order 7 Rule 11 of the CPC are to be constructed harmoniously. It
was further held merely because Court lacks pecuniary jurisdiction and
proceeding under Order 7 Rule 10 or 10A pending before the Court per se
would not oust jurisdiction of Court to pass order under Section 24 of CPC
and it will be a travesty of justice to commence de-novo proceedings from
the stage of filing of written statement. It was further held that no prejudice
would be caused to Respondent no.1s if suit is permitted to be transferred
by itself, which will be a sufficient ground for ordering transfer and
sufficient ingredients of Section 24 of CPC would be made out.
30. From 29th April, 2004 when the petition was listed before the Court
pursuant to the order dated 20th February, 2004 to transfer the case to
District Court, neither the petitioner nor the respondent no.1 sought
transfer of the petition to the District Court rather the petitioner was argued
exhaustively on various dates. After the petitioner concluded his submission
for making the award rule of the Court and the respondent no.1 resisted the
claim on the ground that the disputes had been settled between the parties
and the amounts were paid in full and final settlement and were also
received by the petitioner, the plea was first contested on the ground that
the said plea was not taken earlier. The counsel for the respondent no.1
relied on the reply filed on behalf of Respondent no.1/objector dated 25th
March, 1990 categorically stipulating that the claim of the petitioner are
false, fabricated and vexatious as in terms of record notes dated 28th April,
1989 after deducting an amount of Rs.1,35,911.10 which was admitted by
the petitioner, the balance amount with the other amounts which were due
to the petitioner were paid on 10th July, 1989 which amount was accepted
by the petitioner by making an endorsement on the letter dated 10th July,
1989 and consequently the amount has been paid in full and final
settlement and despite the plea specifically taken by the Respondent
no.1/objector, the learned arbitrators have awarded an amount of
Rs.1,07,301.50/- towards final bill recovery; Rs.60,000/- towards laying of
stone soling 230 mm; Rs.36,000/- for laying of stone soling 100 mm;
Rs.2,05,380/- towards additional work and an amount of Rs.23,318/-
towards excess expenditure due to abnormal variations besides simple
interest @ 13% per annum to the petitioner on account of non-payment of
the amounts awarded within one month from the date of the award dated
25th November, 1991. When left with no answer to this plea that the
petitioner filed an application being I.A no. 9046 of 2010 dated 10.5.2010
praying as under:
"It is therefore, prayed that this Hon'ble court be pleased to transfer the present case to the Hon'ble district Court or/and alternatively the matter be assigned to the Original jurisdiction of this Hon'ble court. Any other order to this Hon'ble court deems fit."
31. The petitioner has not aver that the petitioner shall be prejudiced in
case the petition which has been almost argued conclusively, is not
transferred to the District Court. From the reason stated herein before it is
apparent that the disputes which had arisen between the parties had been
settled and the amounts were paid in full and final settlement. The amount
paid was also accepted by the petitioner. If that be so, the disputes could
not be referred to be adjudicated by the arbitrators as no disputes had
survived after the settlement and acceptance of amount nor the arbitrator
could given an award in favor of petitioner in the facts and circumstances of
this case.
32. If this matter is transferred to the District Court, the parties shall
argue the same points de novo. This cannot be disputed that the High Court
under section 24 of Code of Civil Procedure has power to call any suit from
the lower Court to itself. For the reasons stated herein above and the
precedent relied on, it is a fit case to exercise the power under section 24 of
the Code of Civil Procedure to call back this matter, in case it is to be sent to
the District Court on account of increase of jurisdiction of High Court.
Taking it from any angle it will be just an appropriate to decide the matter
on merit after hearing the arguments for such a long period in the facts and
circumstances of this case and to dismiss the application of the petitioner
being I.A no.9046 of 2010 to transfer the case to the District Court.
Therefore, the said application is dismissed.
33. For the foregoing reasons it is also held that there had been a
concluded settlement between the parties pursuant to which amount was
paid to the petitioner by Respondent No. 1 in full and final settlement,
therefore, there were no disputes which could be referred to the arbitrators
by the parties in the facts and circumstances of this case. The other
disputes regarding validity of the award raised by the parties do not survive
in the facts and circumstances. Therefore, the objections of the respondent
no.1 being I.A no. 9364 of 1991 are allowed and the award dated 25.11.1991
given by Respondent No. 2 and Respondent No. 3 pursuant to agreement no.
AEM/97/102 dated 12th January, 1988 is set aside. Considering the facts
and circumstances the parties are, however, left to bear their own costs.
December 23rd , 2011 ANIL KUMAR, J. „k‟
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