470 14 4 FeAeOeNoa5211 of 2010 l0 S Mle IN THE HIGH COURT FOR THE STATES OF PUNJAB 8 HARYANA AT CHANDIGARH Date of Decision2 April 2011 1 1 FeAeOeNoe5211 of 2010 0 8t Mla 0 C3 I Mlsn Emm Enn Associates throughits partner MreOePeGupta 0 Versus Z Union of India through Commander Works Engineer Air Force HaQ CeWeE AFI Chandigarhand another eeaeRCSpondentSe Z CORAM HONBLE MRJUSTICE MOHINDER PAL m vmo Z le Whether Reportersof Local papers may be allowed to see Ll the judgment 7 2 To be referred to the Reportersor not7 3 Whether the judgmentshould be reportedin the Digest7 Presentl Mr 0 Gupta petitioner in person Ms Anjali Kukkar Advocate for the Union of India respondentNo MOHINDER PAL O The appellant has preferred this appeal against the Anita 2013.04.20 13: 32 True Scanned Copy Of The Original PHHC,Chandigarh JOYTI RANI 2016.03.28 15:56 I attest to the accuracy and integrity of this document 471 CT 4r FeAnOeNoe5211 of 2010 l0 8 Mle judgment dated 262010 passedby the Iearned Additional District Judge SAS Nagar MohaIi whereby the objectionpetition filed by the appellant under Section 34 of the Arbitration and Conciliation Act 1996 for short the ActJ against the Award dated 2562008 passed by Mr AbhayKumar Sinha Additional lZ 2 Chief Engineer PrincipalDirector Planning HeadquartersChief 0 0 Engineer ChandigarhZone N Area Airport Road Chandigarh SoIe Arbitrator respondentNo2 was dismissed C5 I The appeliant had been grantedthe work of repairof Z Officers Quarters at High Ground near Chandigarhby the 2 Departmentof the Air Force lereinafter referred to as r the 1 The partieshad entered into an I 8greement l Z The assignedwork as per the claim of the m had been completedby the appellant and Certificate dated 23 22002 had been issued by the 7 Z The paymentof the final bill as per the claim of the had been made by it to the appellant on 312005 However as per the case of the appellant the did not ma ke payment as per claims of the petitioner The appellantaccordingly invoked the arbitration clause between the parties on 23 22005 which Ied to the appointmentof respondentNo 2 as the Sole Arbitrator by the Honble Chief Justice ofthis Court vide order dated 30 2007 Anita 2013.04.20 13: 32 True Scanned Copy Of The Original PHHC,Chandigarh JOYTI RANI 2016.03.28 15:56 I attest to the accuracy and integrity of this document 472 01 1 8 FeAOe Noe5211 of 2010 1O 8 Mln Annexure AmlJpassedin Arbitration Case No268 of 2006 The Arbitrator passed the award dated 252008 wherein he observed that the appellant had received full and final payment from the respondentOepartmentwithout any m protestor reservation and therefore he opellant could not 2 make anyfurther claime 0 0 Honble the Chief Justice of this Court vide order I dated 302007 Annexure Ael passed in Arbitration Case 40 I No268 of 2006 had appointedrespondent No 2 as Sole Z Arbitrator to settle the disputebetween the parties in view of the 2 arbitrationclause and on the point whether the clalm of the appellantsubsisted or not The Arbitrator could not notsuit the I appellantby holdingthat no claim of the appellantsubsisted It Z is itself mentioned in the a rbitration clause that the Arbitrator co shallgivehis awardwithin a periodof six months from the date of W2 his entering on the reference or within the extended time as the Z case may be on all matters referred to him and shall indicate his tl findingsalongwith sums awarded separatelyon each individual item of dispute Further it has been mentioned in the arbitration clause that the Arbitrator shall give reasons for the award in each and every case irrespective of the vaiue of claims or counter claims Il Admittedly the appellant had received payment of portionof the bill on 3132002 No doubt while hearingobjectionsagainst the Award the Court need not re Anita 2013.04.20 13: 32 True Scanned Copy Of The Original PHHC,Chandigarh JOYTI RANI 2016.03.28 15:56 I attest to the accuracy and integrity of this document 473 4 F Oe No211 of 2010 10 8 Ml appreciate the evidence Ied by the parties before the Arbitrator Irl order to substitute its own opinion but when the Arbitrator did not take into account the fact while renderingthe award In questionthat the final bill submitted by the appeliantconsisted of two parts 1ae agreedpart and the disputedpart and the appellanthad submitted the bill with regardto the undisputedpart 0 0 of the final bill indulgenceof this Court is required It is true that I C5 on completionof the work rightto get payment would arise It is I also true that on settlement of the final bill the rightto get further Z payment gets weakened However whether the claim subsists or 2 not is a matter which is arbitrable The Arbitrator failed to decide tr the dispute within the terms of the arbitration clause of the I agreement mentioned above The award givenby the Arbitrator t0 h1 cannot be said to be not in conflict with the public c0 policy The Iearned additional District JudgeMohali while passing m the impugnedjudgment did not take notice of these facts Z Under the circumstances the Arbitrator was not justified in holding that the claim of the appellantContractordid not subsist without going into the details of the disputedpart ofthe final bill In view of this the Iearned Additional District Judge was not justified in dismissing the objectionpetition filed by the appellantunder Section 34 of the Act against the Award dated 512008 passed the Sole Arbitratoespondent No2 Consequently this appeal is allowed and the impugned judgmentpassed by the Iearned Additional District Judge 1 Anita 2013.04.20 13: 32 True Scanned Copy Of The Original PHHC,Chandigarh JOYTI RANI 2016.03.28 15:56 I attest to the accuracy and integrity of this document 474 lj e 0 e5 FaAnOeNoa5211 of 2010 10 8 Mle is set asideby acceptingthe objectionpetition filed by the appellantunder Section 34 of the Act therebysettingaside the Award givenby the Arbitrator The appellant will be at Iibertyto initiate proceedingsunder Section 11 of the Act 1 l MOHER PALI 0 April 2011 JUDGE 1 0 ak 1 I C5 I Z 2 C3 Z rlo 7 Z 1 1 Anita 2013.04.20 13: 32 True Scanned Copy Of The Original PHHC,Chandigarh JOYTI RANI 2016.03.28 15:56 I attest to the accuracy and integrity of this document