Vishnu (D)By Lrs vs State Of Maharashtra & Ors on 4 October, 2013
The words “any dispute” appears in clause 4 of the Work Order.
Therefore, only on the basis of the materials produced by the
parties in support of their respective claims a decision can be
arrived at in resolving the dispute between the parties. The use
of the words “any dispute” in clause 4 of the Work order is wide
enough to include all disputes relating to the said Work Order.
Therefore, when a party raises a dispute for non-payment of
money after completion of the work, which is denied by the other
party, such a dispute would come within the meaning of
“arbitration agreement” between the parties. Clause 4 of the
Work Order also clearly provides that any dispute between the
department and the contractor shall be referred to the
Superintending Engineer, Hydel Circle No.1, Chandigarh for
orders. The word “orders” would indicate some expression of
opinion, which is to be carried our, or enforced and which is a
conclusion of a body (in this case Superintending engineer,
Hydel Circle No.1, Chandigarh). Then again the conclusion and
decision of the Superintending Engineer will be final and
binding on both the parties. This being the position in the
present case and in view of the fact that clause 4 of the Work
Order is not under challenge before us, the decision that would
be arrived at by Superintending Engineer, Hydel Circle No.1,
Chandigarh must also be binding on the parties as a result
whereof clause 4 must be held to be a binding arbitration
agreement.”
The Bench distinguished the judgment in State of Orissa v. Damodar Das
(supra) by making the following observations: