Union Of India (Uoi) vs K.P. Mandal on 3 April, 1958
In Union of India v. K. P. Mandal, , the arbitration clause in a contract for execution of certain work by A with the Government of India prescribed that except as otherwise provided in the contract, all questions and disputes arising out of or relating to the contract would be referred to the arbitration of the Superintending Engineer of the Circle for the time being. Disputes arose between the parties and the Government appointed one M as an arbitrator to adjudicate on the claim made by it against A and informed A about the "appointment. Both the parties knew that M was not competent to act as arbitrator according to the qualification laid down by the arbitration clause. A not only submitted to the arbitration of M. on the Government's claim but also put forward a counter-claim against the Government for adjudication by the same arbitrator; he took part in the proceedings from the beginning to the end; he agreed to extensions of time for filing the award; and when the award went against him sought to set aside the award on the ground, that M was not competent to act as arbitrator. Our Appellate Court (Chakravartti C. J. and Lahiri, J.) has held that the rule of estoppel binds A and prevents him from contending that M was not qualified under the terms of the agreement to arbitrate in the dispute.