Ordinary meaning in arbitration clauses and statutory transfer provisions required dispute referral to the Arbitration Tribunal.

An arbitration clause referring to a Superintending Engineer of the State Public Works Department was construed by its ordinary meaning to include the Irrigation wing, and the officer's departmental connection did not invalidate the appointment merely because he served under the Chief Engineer. Section 41A of the Arbitration (Orissa Amendment) Act, 1982, with its non-obstante clause, required disputes involving the State or a controlled authority, including pending references without an award, to be transferred to the statutory Arbitration Tribunal. The earlier orders were set aside and the dispute directed to proceed before the Tribunal.

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Issues: (i) Whether, under Clause 23 of the agreement, the Chief Engineer could validly appoint a Superintending Engineer of the Irrigation Department as arbitrator; (ii) whether, in view of Section 41A inserted by the Arbitration (Orissa Amendment) Act, 1982, the dispute had to stand transferred to the statutory Arbitration Tribunal.

Issue (i): Whether, under Clause 23 of the agreement, the Chief Engineer could validly appoint a Superintending Engineer of the Irrigation Department as arbitrator.

Analysis: The expression used in Clause 23 had to be read according to its ordinary and grammatical meaning. The reference to a Superintending Engineer of the State Public Works Department was wide enough to include the Irrigation wing of the Public Works Department. The restrictive words "unconnected with the work" referred to the particular contract dispute, not to the department in which the officer served. The appointment was therefore not invalid merely because the officer belonged to the Irrigation Department or was subordinate to the Chief Engineer.

Conclusion: The appointment of the Superintending Engineer, Irrigation as arbitrator was valid and the contrary view was erroneous.

Issue (ii): Whether, in view of Section 41A inserted by the Arbitration (Orissa Amendment) Act, 1982, the dispute had to stand transferred to the statutory Arbitration Tribunal.

Analysis: Section 41A contained a non-obstante clause and mandated that where the State Government or a controlled authority was a party, all references to arbitration were to be made to the Arbitration Tribunal. It also provided for transfer of pending arbitration proceedings in which no award had been made by the commencement date. The present dispute fell within that statutory scheme.

Conclusion: The dispute was required to be referred to and disposed of by the Arbitration Tribunal constituted under Section 41A.

Final Conclusion: The appeal was allowed, the earlier orders were set aside, and the dispute was directed to proceed before the statutory Arbitration Tribunal under the amended law.

Ratio Decidendi: In construing an arbitration clause, the court must give the words their ordinary meaning; a departmental description includes its recognized wings unless excluded by the contract, and a later mandatory statutory transfer provision with a non-obstante clause overrides pending contractual arbitration references.

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