STATE OF ORISSA & ORS. versus BHAGYADHAR DASH

STATE OF ORISSA & ORS. versus BHAGYADHAR DASH

Clause 10 of the contract, which provided for the Superintending Engineer to finally determine rates for non-tendered additional work, does not constitute an arbitration agreement as it lacks reference to arbitration, does not bind parties judicially, and was intended only to avoid disputes about rates, not to settle disputes by arbitration; the deletion of the arbitration clause (clause 23) from contracts after 1981 confirms no arbitration agreement exists.

Parties
Appellant: State of Orissa & Ors.; Respondent: Bhagyadhar Dash
Jurisdiction
India
Judgment Date
04 July 2011
Procedural Posture
Civil Appeal / Appeal From Order of Chief Justice of High Court Under Section 11, Arbitration and Conciliation Act, 1996
Outcome
appeals allowed
Legal Topics
Arbitration Agreement Interpretation, Settlement of Disputes in Government Contracts, Appointment of Arbitrators
Arbitration Contract Law Arbitration Agreement Interpretation Settlement of Disputes in Government Contracts Appointment of Arbitrators

Case Brief

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Parties

State of Orissa & Ors.

Appellant

Bhagyadhar Dash

Respondent

Procedural Posture

Civil Appeal / Appeal From Order of Chief Justice of High Court Under Section 11, Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether clause 10 of the conditions of contract is an arbitration agreement allowing appointment of arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996

Ratio Decidendi

Clause 10 of the contract, which provided for the Superintending Engineer to finally determine rates for non-tendered additional work, does not constitute an arbitration agreement as it lacks reference to arbitration, does not bind parties judicially, and was intended only to avoid disputes about rates, not to settle disputes by arbitration; the deletion of the arbitration clause (clause 23) from contracts after 1981 confirms no arbitration agreement exists.

Court Disposition

appeals allowed

Orders

  • Orders of the High Court appointing the arbitrator set aside
  • Applications for appointment of arbitrator dismissed