TaxTMI 
TaxTMI 
1999 (1) TMI 513
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....p; "Decision of the Executive Engineer of the UPSIC to be final on certain matters : Clause 23 : Except where otherwise specified in the contract, the decision of the Executive Engineer shall be final, conclusive and binding on both the parties to the contract on all questions relating to the meaning, the specification, design, drawings and instructions herein before mentioned, and as to the quality of workmanship or materials used on the work or as to any other question whatsoever in any way arising out of or relating to the designs, drawings, specifications, estimates, instructions, orders or otherwise concerning the works....
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....Sharma. Executive Engineer, as Arbitrator. In appeal, the High Court, while upholding the finding that there was an arbitration clause, held that the court below had no jurisdiction under Section, 8 to appoint another Arbitrator in the place of Managing Director since none of the clauses of Section 8 was attracted in the present case. The High Court, therefore, set aside the order of the court below and dismissed the application of the appellant under Section 8. From this judgment the appellant has filed the present appeal. The first question that requires consideration is whether there is any clause in the contract which provides for arbitration between the parties. The relevant Clauses are Clauses 23 and 24. under Clause 23, the ....
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....parties to leave any disputes to the adjudication of the Managing Director of the respondent as an Arbitrator. In the case of K.K. Modi v. K.N. Modi & Ors., [1998] 3 SCC 573, a bench of this Court (of which one of us was a member) had the occasion to consider the essential ingredients of an arbitration clause. Among the ingredients which are described in the said judgment, two important ingredients are; that the agreement between the parties must contemplate that substantive rights of parties will be determined by the agreed Tribunal and that the Tribunal will determine the rights of the parties in an impartial and judicial manner with the Tribunal owing an equal obligation of fairness towards both sides and also that the agreement of the p....
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....ill not normally be any oral `evidence' or oral submissions." In the present case, reading Clauses 23 and 24 together, it is quite clear that in respect of questions arising from or relating to any claim or right, matter or thing in any way connected with the contract, while the decision of the Executive Engineer is made final and binding in respect of certain types of claims or questions, the decision of the Managing Director is made final and binding in respect of the remaining claims. Both the Executive Engineer as well as the Managing Director are expected to determine the question or claim on the basis of their own investigations and material. Neither of the clauses contemplates a full-fledged arbitration covered by the Arbitration ....
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....ied in the contract the decision of the Superintending Engineer for the time being shall be final, conclusive and binding on all parties to the contract upon all questions relating to the meaning of the specifications, designs, drawings and instructions hereinbefore mentioned. The decision of such engineer as to the quality of workmanship or materials used on the work or as to any other question claim, right, matter or thing whatsoever in any way arising out of or relating to the contract, designs, drawings, specifications.........or other-wise concerning the works, or the execution or failure to execute the same.........shall also be final, conclusive and binding on the contractor". This Court held that the clause did not contain an arb....