M/S. KLASSIC CONSTRUCTION (PVT.) LTD. versus M/S. ARMY WELFARE HOUSING ORGANISATION

Citation: [2006] SUPP. 3 S.C.R. 1 · Decided: 25-05-2006 · Supreme Court of India · Bench: AR. LAKSHMANAN, LOKESHWAR SINGH PANTA · Disposal: Disposed off

Judgment (excerpt)

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MIS. KLASSIC CONSTRUCTION (PVT.) LTD. 
A 
v. 
MIS. ARMY WELFARE HOUSING ORGANISATION 
MAY 25, 2006 
[DR. AR. LAKSHMANAN AND LOKESHWAR SINGH PANTA, JJ.] 
B 
Arbitration : 
Appointment of arbitrator-Adjudication of dispute from the stage left 
by earlier arbitrator-Construction contract-Arbitration clause providing for C 
reference of dispute to sole arbitrator to be appointed by Chairman, Army 
Welfare Housing Organisation-In appeal before Supreme Court, on Court's 
direction Housing Organisation submitted a panel of three names-With consent 
of parties Court appointing one of them as sole arbitrator-Parties at liberty 
to amend their claims and counter claims and file additional documents before D 
sole arbitrator who shall adjudicate the dispute from the stage left by erstwhile 
sole arbitrator and pass a speaking award and submit the same to this Court. 
CIVIL APPEL LA TE JURISDICTION : Civil Appeal Nos. 5352 of 2002. 
From the Judgment and Order dated 2.8.2001 of the High Court of E 
Delhi at New Delhi in FAO(OS) No. 32812001. 
P.N. Kumar, Anurag Kumar and Rishi Kesh for the Appellant. 
Arvind Kumar Tewari for the Respondent. 
The following Order of the Court was delivered : 
F 
ORDER 
Heard Mr. P.N. Kumar, learned counsel for the appellant and Mr. Arvind 
Kumar Tewari, learned counsel for the respondent. The appellant before us 
is a contractor. The respondent is the Army Welfare Housing Organisation G 
represented by its Chairman/Managing Director. 
Both the appellant and respondent entered into an agreement on 8.5.1990 
by which the contract was awarded to the appellant for executing certain 
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SUPREME COURT REPORTS (2006] SUPP. 3 S.C.R. 
A construction works. Clause 131 of the contract deals with the arbitration 
which reads as under: 
" l 3 l. 1 f any dispute arises and persists between the contractor 
and Employer, the same shall be referred to the Sole Arbitrator to be 
appointed by the Chairman, Army Welfare Housing Organisation, 
B 
whose award shall be final and binding on both parties. The Arbitrator 
shall submit his award within four months of his entering on the 
reference. This period may be extended by the Arbitrator with the 
consent of both the parties." 
On l 7.5.2006, after hearing both the parties, we passed a detailed order 
C directing the Army Welfare Housing Organisation to submit a Panel of three 
names to this Court with a copy to the learned counsel for appellant in the 
form of an affidavit. Pursuant to the said directions, an affidavit dated 
22.5.2006 on behalf of respondent has been filed before us. A copy of the 
said affidavit has also been served on the counsel for the appellant. The 
D affidavit reads thus: 
E 
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G 
H 
"An affidavit on behalf of the Respondent of the compliance of orders/ 
directions dated 17.05.2006 of this Hon'ble Court. 
I, Col. A.K. Opal, Secretary Army Welfare Housing Organisation, a 
society registered under the Society Registration Act XX! of 1860 
having it's registered office at South Hutments, Kashmir House, Rajaji 
Marg, New Delhi 110011 do hereby solemnly affirm on oath and 
state as follows: 
That I am the secretary of the respondent society in the aforesaid 
case. I am conversant with the facts and circumstances of the case, 
as such competent to affirm this affidavit. 
1. 
I say that after hearing the counsels of the parties in the aforesaid 
case this Hon'ble Court vide it's order dated 17.05.2006 was 
pleased to direct the Ex-Officio Chairman of the Army Welfare 
Housing Organisation/respondent herein, to nominate a panel of 
three names out of which this Hon'ble Court may appoint one 
such nominee as a sole arbitrator to adjudicate the disputes 
between the parties herein. 
2. 
I say that in compliance to the order(s) I direction(s) dated 
I 7.05.2006 of this Hon'ble Court, Ex-Officio Chairman of the 
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KLASSIC CONSTRUCTION (PVT.) LTD. v. ARMY WELFARE HOUSING ORGANISATION 3 
Army Welfare Housing Organisation I respondent herein, has A 
been pleased to comply with the directions of this Hon'ble Court 
and has nominated a panel of the following three engineer officers: 
a. Brig. Anil Wasan, age 53 years, Deputy Director General (Navy & 
Defence Production), Officer shall superannuate from present 
appointment on. 31 July 2008. 
B 
b. Brig AK Jairath, age 52 years, Deputy Director General (Policy 
Planning and Coordination ). As a sole arbitrator has adjudicated 06 
cases. Tenure of the officer in the present appointment is till 

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