State of Orissa Vs. Bhagyadhar Dash
|
Head Note
The Arbitration and Conciliation Act, 1996 - Section 11 , Section 2
Essentials of Arbitration Agreement - Law reiterated - (1) Arbitration agreement is not required to be in any particular form - What is required to be ascertained is whether the parties have agreed that if disputes arise between them in respect of the subject-matter of contract such dispute shall be referred to arbitration ; and if the answer was in the affirmative, then such an arrangement would spell out an arbitration agreement. (2) Following essential elements of Arbitration clause laid down in 2003(7) SCC 418:
(i) There must be a present or a future difference in connection with some contemplated affair;
(ii) There must be the intention of the parties to settle such difference by a private tribunal;
(iii) The parties must agree in writing to be bound by the decision of such tribunal; and
(iv) The parties must be ad idem. 1980(4) SCC 566, relied.
The Arbitration and Conciliation Act, 1996 - Section 11 , Section 2
Govt. contract - A clause in the agreement between Govt. and contractors provided that if contractor executed a work for which there was no rate in contract agreement, the contractor shall be paid at the rates fixed by Engineer-in-Chief and if the contractor disputed the rates for such non-scheduled item the decision of the Superintending Engineer in regard to rate for such non- scheduled in item shall be final - Held, it cannot be termed as Arbitration agreement - It does not disclose any intention to make the Superintending Engineer an arbitrator in respect of disputes that may arise between the Engineer-in-Charge the contractor - It does not make the decision of the Superintending Engineer final on any dispute, other than the claim for increase in rates for non-tendered items - Appointment of arbitrator by Chief Justice of High Court set aside.
Topic(s)-
Important Decision(s)- Arbitration agreement is not required to be in any particular form.