TaxTMI 
TaxTMI 
1983 (10) TMI 291
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....learned Subordinate Judge has set aside the appointment of the Superintending Engineer, Irrigation by the Chief Engineer to be the Arbitrator and instead appointed a retired District & Sessions Judge of Cuttack as the Arbitrator. 2. Put briefly, the essential facts are these. The respondent herein is a contractor and had entered into an agreement being Agreement No. 1 F-2 of 1970-71 with the State Government of Orissa relating to the Excavation of Satankha Distributory with its minor and sub-minor from O.M. to Tail. The respondent raised a dispute and served a notice on the Chief Engineer for the appointment of an arbitrator 15 under Clause 23 of the Agreement. Subsequent to the said notice he filed an application under Section 8 read wi....
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....ter upon the reference. He further held that D. Sahu, Superintending Engineer, Irrigation being directly subordinate to the Chief Engineer, his appointment was in violation of the terms of Clause 23 and as such his appointment as Arbitrator was invalid. The learned Subordinate Judge accordingly set aside the order of the Chief Engineer appointing D. Sahu, Superintending Engineer, Irrigation to be the Arbitrator, and further held that the Chief Engineer having failed to appoint an arbitrator within 15 days of the receipt of the notice, he had no power to appoint an arbitrator, and instead directed B. S. Patnaik, retired District and Sessions Judge, Cuttack to be the 15 Arbitrator. Dissatisfied with the decision of the learned Subordinate Jud....
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....rks Department unconnected with the work at any stage nominated by the concerned Chief Engineer. If there be no such Superintending Engineer it should be referred to the sole arbitration of the Chief Engineer concerned. It will be no objection to any such appointment that the arbitrator so appointed is a Government Servant. The award of the arbitrator so appointed shall be final, conclusive and binding on all parties to these contract. 5. The learned Subordinate Judge by the impugned order accepted the contention advanced by the respondent as to the invalidity of the appointment of D. Sahu, Superintending Engineer, Irrigation to be the Arbitrator. On a reading of the arbitration clause, the learned Subordinate Judge observes : It is s....
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....Power, Public Health and Works Department etc. In the Orissa Public Works Department Code, vol. 1, revised edn. 1976 in the definition clause at 1.2 of Chapter 1 are given the meaning of the expressions "Public Works" and "Public Works Department". Paragraphs 21 and 22 are extracted below : 21. "Public Works" means several works, public health, engineering works, irrigation, navigation, embankment and drainage works and electricity works. 22. "Public Works Department" means the Department of the State Govt. in Administrative charge of Public Works. 7. There was really no illegality on the part of the Chief Engineer in appointing D. Sahu, Superintending Engineer, Irrigation to be the Arbitrator since he belongs to the Pu....
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...." clearly manifests an intention of the parties that all questions and disputes arising out of a works contract shall be referred to the sole arbitration of a Superintending Engineer of the concerned department. From the very nature of things, a dispute arising out of a works contract relating to the Department of Irrigation has to be referred to a Superintending Engineer, Irrigation as he is an expert on the subject and it cannot obviously be referred to a Superintending Engineer, Building & Roads. The only limitation on the power of the Chief Engineer under Clause 23 was that he had to appoint a "Superintending Engineer unconnected with the work" i.e. unconnected with the works contract in relation to which the dispute has arisen. The lea....
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....e member chosen from among the officers of the Public Works Department of the State Government not below the rank of a Superintending Engineer; (c) one member chosen from among the officers belonging to the Orissa Finance Service not below the Superior Administrative Cadre in Class I. (3) The member chosen from the Superior Judicial Service (Senior 40 Branch) shall be the Chairman of the Tribunal. (4) The terms and conditions of appointment of the members of the Tribunal and the headquarters thereof shall be as may be determined by the State Government from time to time. (5) The business of the Arbitration Tribunal shall be conducted in such manner as the Tribunal may determine. (6) The Arbitrati....