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Showing contexts for: ASANSOL in Union Of India & Ors vs Aradhana Trading Co & Ors on 1 April, 2002Matching Fragments
BRIJESH KUMAR, J.
These appeals arise out of the Judgment and Order dated 19.3.1999 passed by the Division Bench of Calcutta High Court in a bunch of appeals preferred by the present appellant before us. We have heard the learned counsel for the parties. The main question that falls for our consideration in these appeals is about the maintainability of appeal before the Division Bench against the judgment and order of the learned Single Judge of the Calcutta High Court, rejecting the application under order 9 Rule 13 CPC for setting aside the ex-parte decree making the Award Rule of the Court. The other question is as to whether the High Court was justified in entertaining the proceedings for making the award Rule of the Court since the District Courts of Asansol had also been moved by the appellant to issue notice to the Arbitrator, under Section 14(2) of the Arbitration Act 1940, for filing of the award in the Asansol Court.
It appears that the appellant, namely the Union of India entered into agreements with the respondents for supply of certain items to the Railways viz Chittranjan Locomotives. After the supplies, the Department felt that the bills of exorbitant amount were being raised by the respondents and an enquiry was also set up in that connection. Since however, payments were not being made, the respondents filed writ petitions in Calcutta High Court for direction to the Government to make payment of bills. The High Court passed a common order dated 24.11.1995 in the writ petitions, directing the General Manager to appoint arbitrators to settle the disputes, consequently on December 12,1995 four Arbitrators were appointed. Parties filed their respective claims before the Arbitrators and put forth their pleas and placed the interim report of the Committee regarding rates of 42 items involved in various purchases made under different agreements. Since the time to make the Award had expired, the High Court on being approached by the parties, extended time with their consent; for a period of two months, by order dated 4.2.1997. The Awards were published by Arbitrators on 14.8.1997 sending notices of the same to the parties. The Awards had been filed by the Arbitrators in the Calcutta High Court on 11.11.1997. Notices of the filing of the Award had also been issued by the High Court which were served upon the appellants on 11.12.1997. The appellants did not file any objection against the Award. The case was fixed on 27.1.1998. It appears that nobody appeared on behalf of the Appellant despite notice and since no objections too, were preferred by them against the award, the High Court passed Decree in terms of the Award making the same Rule of the Court. The Appellant moved an application on 24.2.1998 for recalling the order dated 27.1.1998 passed by the High Court, explaining its absence on the date of hearing and stating that it had moved an application on 29.9.1997 under section 14(2) of the Arbitration Act 1940 before the Assistant District Judge, Asansol, praying for a direction to the Arbitrators to file Awards in the Asansol Courts, therefore awards could not be filed in the High Court..
Coming to the question as to whether the arbitrators could file the award under Section 14 (2) of the Arbitration Act 1940 in the High Court of Calcutta or not, it has been submitted on behalf of the appellant that the subject-matter of arbitration viz. supplies, have been made to Chitranjan Locomotive which is situate in District of Asansol. Therefore, it was only appropriate for the arbitrator to have filed the award in the District Court of Asansol. A reference has again been made to the application dated 24.9.1997 moved before the Assistant District Judge, Asansol for directions to the Arbitrators requiring them to file the award in original along with all records and documents within the time as may be fixed by the Court in Asansol. It has no where been indicated by the appellant that the Court of Assistant District Judge, Asansol had ever issued any notice on the aforesaid application or any direction to the Arbitrators as prayed. On the other hand, the award was undisputedly filed in the High Court on 11.11.1997 in respect whereof notice was issued, which was received by the appellant on 11.12.1997. Despite service of notice, the appellant did not seem to have moved any application informing the High Court or the respondents that they had already moved any application before Assistant District Judge, Asansol for a direction to the Arbitrators to file the award in that Court or indicating any reservation about filing of the award in the High Court.
Besides the above, it is to be noticed that the Arbitrators were appointed in pursuance of an order passed by the High Court on the writ petitions filed by the respondents as a consequence whereof the Arbitrators proceeded in the matter and finally published the award. On two occasions earlier, the parties including the appellant had approached the High Court only for extension of time for making the award. The orders were passed by the High Court on 24,2,1997 and 28.7.1997 extending the time that is to say much before the appellant moved application in the Court of the Assistant District Judge, Asansol for a direction to the Arbitrator to file the award in Asansol. In the above circumstances, it is too late in the day for the appellant to turn around and say that that the High Court of Calcutta could not entertain the filing of the award and to proceed with making it a rule of the court. Needless to mention that Calcutta High Court exercises its original civil jurisdiction as well. Therefore, perhaps the appellant has not come up with the case that there was any inherent lack of jurisdiction in the High Court of Calcutta to entertain such suit or proceedings. As indicated earlier the appellant itself had submitted to the jurisdiction of the High Court while moving application for extension of time under Section 28 of the Arbitration Act. We therefore do not find any fault in the finding of the High Court negating the plea raised by the appellant that Arbitrators should have filed the Award in the Asansol courts and not in the High Court.