The Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992

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The Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992
1992 : Guj . 4 ]
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GOVERNMENT OF GUJARAT

LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT

Gujarat Act No. 4 of 1992

The Gujarat Public Works Contracts
Disputes Arbitration Tribunal Act,
1992

(As modified upto the 30th September, 2007)

The Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992
1992 : Guj . 4 ]
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THE GUJARAT PUBLIC WORKS CONTRACTS DISPUTES
ARBITRATION TRIBUNAL ACT, 1992

CONTENTS.

PREAMBLE.

SECTIONS. PAGE No.

CHAPTER I.
PRILIMINARY.

1. Short title, extent and commencement.

2. Definitions.

CHAPTER II.
CONSTITUTION OF TRIBUNAL.

3. Establishment and constitution of tribunal.

4. Terms and conditions of service of Chairman and other members of Tribunal.

5. Vacancy and temporary absence.

6. Staff of Tribunal.

7. Head quarters of Tribunal.

CHAPTER III.
REFERENCE TO AND PROCEDURE OF TRIBUNAL.

8. Reference to Tribunal and making of award.

9. Practice and procedure of Tribunal.

10. Tribunal to have powers of Court.

11. Review of award of Tribunal.

12. Revision.

13. Bar of Jurisdiction of Courts.

CHAPTER IV.
MISCELLANEOUS.

14. Proceedings before Tribunal to be Judicial Proceedings.

15. Members and Staff of Tribunal to be Public Servants.

16. Application of sections 4 and 12 of the Limitation Act, 1963.

17. Extension of period of Limitation in certain cases.

18. Protection of action taken in good faith.

19. Power to remove difficulties.

20. Rules.

21. Arbitration Act to cease to apply.

22. Repeal and Savings.
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GUJARAT ACT No. 4 OF 1992.1 

[ The Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992.]
[23rd March, 1992]

AN ACT
to provide for the constitution of a Tribunal to arbitrate in disputes arising from
works contracts to which the State Government or a public undertaking
is a party and to provide for matters connected therewith

It is hereby enacted in the Forty -third Year of the Republic of India as
follows-

CHAPTER I
PRILIMINARY

1. (1) This Act may be called the Gujarat Public Works Contracts Deputes
Arbitration Tribunal Act, 1992

(2) It extends to the whole of the State of Gujarat

(3) This section shall be deemed to have come into force on the 5th
December, 1991 and the remaining provisions of this Act shall come into
force on such date as the State Government may, by notification in the
Official Gazette, appoint

2. (1) In this Act, unless the context otherwise require,-

(a) "Arbitration Act" means the Arbitration Act, 1940,

(b) "Arbitration clause" means a clause in the works contract to
submit the present or future difference to arbitration ,

(d) "Chairman" means the Chairman of the Tribunal ,

(e) "dispute" means any difference relating to any claim valued at any
amount equal to or exceeding fifty thousand rupees, arising out of the
execution or non-execution of whole or part of a works contract,

(f) "member" means a member of the Tribunal and inc ludes the
Chairman ,

(g) 'party' means a party to a works contract and includes its
successors, executors, administrators or assignees ,

(h) "prescribed" means prescribed by rules made under section 20;

(i) "public undertaking" means-

(i) any company as defined in section 3 of the Companies
Act, 1956 in which not less than fifty -one per cent of the paid
up share capital is held by the State Government or any
company which is a subsidiary (within the meaning of that
Act) of the first mentioned company,

(ii) any corporation (not being a company as defined in
section 3 of the Companies Act, 1956 or local authority)
established by or under a Central Act or a State Act and
owned or controlled by the State Government,

(iii) such cla ss of local authorities as the State Government
Short title, extent and
commencement.
Definitions.
X of 1940.
1 of 1956.
1 of 1956.
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may, by notification in the Official Gazette, specify ;

(j) "Tribunal" means the Gujarat public Works Contract Disputes
Arbitration Tribunal constituted under secton 3;

(k) "Works contract" means a contract made by the State Government
or the public undertaking with any other person for the execution of
any of its works relating to construction, repairs or maintenance of
any building or superstructure, dam, weir, canal, reservoir, tank, lake,
road, well, bridge, culvert, factory or work shop or of such other work
of the State Government or, as the case may be, of the public
undertaking, as the State Government may, by notification in the
Official Gazette specify, and includes-

(i) a contract made for the su pply of goods relating to the
execution of any of such works,

(ii) a contract made by the Central Stores Purchase
Organisation of the State Government for purchase of sale of
goods.

(2) Words and expressions used and not defind in this Act but defind in the
Arbitration Act, shall have the meanings assigned to them in the Arbitration
Act.

CHAPTER II.
CONSTITUTION OF TRIBUNAL.

3. (1) The State Government shall, by notification in the Official Gazette,
establish a Tribunal to be called the Gujarat Public Works Contract Disputes
Arbitration Tribunal, to exercise the jurisdiction, powers and authority
conferred on it by or under this Act.

(2) The Tribunal shall be consist of the Chairman and such number o f other
members as may be appointed by Government.

(3) No person shall be qualified for appointment-

(a) as the Chairmain, unless he is, or has been a Judge of High Court,
and

(b) as a member of the Tribunal, unless he-

(i) is, or has been, a District Judge, for at least five years, or

(ii) is, or has been, a Secretary to the Government of Gujarat
for at least three years, or

(iii) is, or has been, a Chief Engineer of the Government of
Gujarat for at least three years.

4. (1) The Chairmain and a member of the Tribunal shall hold office for a term
of three years from the date on which he assumes his office or until he
attains,-

(a) in the case of the Chairman, the age of sixty-five years; and

(b) in the case of any other member, the age of sixty -two years,
whichever is earlier,

(2) The salaries and allowances, payable to, and other terms and conditons of
service of the Chairman an d other members shall be such as may be
prescribed :

Provided that neither the salary and allowances nor the other terms
Establishment
and constitution
of Tribunal.
Terms and conditions of
service of Chairman and
other members of
Tribunal.
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and conditions of service of the Chairman or other members shall be varied to
his disadvantage after his appointment.

(3) (a) The Chairman or other member may, by notice in writing under
his hand addressed to the State Government, resign his office.

(b) The Chairman or any member shall not be removed from his
office before the expiry of the term of his office except by an order of
the State Government on the ground of proved misbehaviour or
incapacity after an inquiry made by the Chief Justice of the High
Court in which such Chairman or other member has been informed of
the charges against him and given a reasonable opportunity of being
heard in respect of those charges.

5. (1) If any vacancy occurs by reason of the death, resignation or expiry of term
of appointment, or removal of the Chairman or other member, or for any
other cause whatsoever, such vacancy shall be filled in by appointment of a
duly qualified person.

(2) If any member becomes, by reason of illness or other infirmity,
temporarily incapable of performing the dut ies of his office, the State
Government may appoint some other duly qualified person to discharge his
duties for any period not exceeding six months at a time and the person so
appointed shall during that period have the same powers as the person in
whose place he is appointed.

(3) The Tribunal shall not deemed to be invalidly constituted merely by
reason of any vacancy or temporary absence referred to in sub -section (1) or
(2).

6. (1) The Tribunal may, with the previous approval of the State Government,
appoint such number of officers and servants of the Tribunal as it my think
fit.

(2) The salaries and the allowances payable to, and other conditions of service
of, the officers and se rvants of the Tribunal shall be such as may be
prescribed.

7. (1) The headquarters of the Tribunal shall be at such place as the Mate
Government may, by an order published in the Official Gazette, determine.

(2) Notwithstanding anything contained in sub -section (1) the Tribunal may
sit at such other place or places, other then the place at its headquarters, as the
Tribunal may, with the approval of the State Government, appoint.

CHAPTER III.
REFERENCE TO AND PROCEDURE. OF TRIBUNAL.

8. (1) Where any dispute arises between the parties to the works contract, either
party shall, irrespective of whether such works contract contains an
arbitration clause or not, refer, within one year from the date when the dispute
has arisen, such dispute in writing to the Tribunal for arbitration in such form
and accompanied by such documents or other evidence and by such fees, as
may be prescribed.

(2) On receipt of a reference under sub-section (1), the Tribunal may, if
satisfied after such inquiry as it may deem fit to make, that the requirements
under this Act in relation to the reference are compiled with, admit such
reference and where the Tribunal is not so satisfied, it may rej ect the
reference summarily.

Vacancy and
temporary absence.
Staff of Tribunal
Head quarters
of Tribunal.
Reference to Tribunal
and making of award
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(3) Where the Tribunal admits the reference under sub -section (2), it shall,
after recording evidence if necessary, and after perusal of the material on
record and on affording an opportunity to the parties to submit their
arguments, make an award or an interim award giving its reasons therefore .

(4) The Tribunal shall use all reasonable despatch in entering on and
proceeding with the reference admitted by it and making the award, and an
endeavour shall be made to make an award within four months from the date
on which the Tribunal had admitted the reference.

(5) The award including the interim award made by the Tribunal shall, subject
to an order, if any, made under section 11 or 12 be final and binding on the
parties to the dispute.

(6) An award including an interim award as confirmed or varied by an order,
if any, made under section 11 or 12 shall be deemed to be a decree within the
meaning of section 2 of the Code of Civil Procedure, 1908 of the principal
Court of original jurisdiction within the local limits whereof the award or the
interim award has been made and shall be executed accordingly.

9. (1) The Tribunal may, with the previous sanction of the State Government,
make regulations consistent with the provisions of this Act and the rules made
thereunder, for regulating its practice and procedure, including the
constitution of Benches, the disposal by the Tribunal or a Bench thereof of
any proceedings before it notwithstanding that in the course thereof there has
been a change in the persons sitting as members of the Tribunal or Bench,
making of interim award, the right of audience before the Tribunal or a Bench
thereof, the levy of any process fee, the award of costs and generally for the
effective exercise of its powers and discharge of its functions under this Act.

(2) The regulations made under sub -section ( 1) sh all be published in the
Official Gazette.

(3) The fuctions of the Tribunal may be discharged by one or more Benches
thereof constituted in accordance with the regulations made under sub-section
(1).

(4) If the members of the Tribunal or a Bench thereof a re divided, the
decision shall be the decision of the majority, if there be a majority, but if the
members are equally devided they shall state the point or points on which
they differ, and the case shall be referred by the Chairman of the Tribunal for
hearing on such point or points to one or more of the other members of the
Tribunal, and such point or points shall be decided accordingly to the
majority of the members of the Tribunal who heard the case including those
who first heard it.

10. For the porpose of exercising its jurisdiction under this Act, the Tribunal shall
have the same powers as are vested in a Civil Court under the Code of Civil
Procedure, 1908 in respect of the following matters, namely :-

(a) summoning and enforcing the attendance of any person and examining
him on oath;

(b) requiring the discovery and production of documents ;

(d) any other matter which may be prescribed.

11. (1) The Tribunal may, either on its own motion or on the application of any
party aggrieved by the award or the interim award, review the award or
interim award made by it and pass in reference thereto such order as it thinks
just and proper :
Provided that no such application made by any party shall be entertained,
unless the Tribunal is satisfied that there has been the discovery of new and important
matter or evidence which after the exercise of due diligence was not within th e
V of 1908.
Practice and pro-
cedure of Tribunal.
Tribunal to
have powers of
Court.
V of 1908.
Review of award
of Tribunal.
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knowledge of such party or could not be produced by such party at the time when
evidence on the basis of which award or interim award made was recorded by it or
that there has been some mistake or error apparent on the face of the record, or for
any other sufficient reason :

Provided further that, no such award or interim award shall be varied or
revised, unless notice has been given to the interested to appear and be heard in
support or such variation or revision.

(2) An application for review under sub-section (1) by any party aggrieved by
the award or interim award shall be made within ninety days from the date of
the award or the interim award of the Tribunal.

12. (1) The High Court may, suo moto at any time or on an application made to it
within three months from the date on which the award or interim award is
made or reviewed under this Act, by any party aggrieved by the award or
interim award so made or reviewed, call for the record of any case in whic h
an award or interim award has been made or, as the case may be reviewed
and if the Tribunal appears-

(a) to have exercised a jurisdiction not vested in it by law, or

(b) to have failed to exercise a jurisdiction so vested, or

(d) the High Court may make such order in the case as it thinks fit.

(2) For the purpose of exercising its powers of revision under this section, the
High Court shall have the same powers as it has, and as far as may be, follow
the same procedure as it follows, under the Code of Civil Procedure, 1908
while exercising its powers of revision under section 115 of the Code, and for
that purpose the Tribunal shall be deemed to be a Court subordinate to it.

13. (1) Save as otherwise provided by section 12, no Civil Court shall have
jurisdiction to deal with or decide any question which the Tribunal is
empowered to deal with and decide by or under this Act and no injunction
shall be granted by any Civil Court in respect of any action taken or to be
taken in pursuance of any power by or under this Act.

(2) No award or interim award or order made or proceedings taken under this
Act by the Tribunal shall be called in question in any Civil Court.

CHAPTER IV.
MISCELLANEOUS.

14. All proceedings before the Tribunal shall be deemed to be judicial proceedings
within the meaning of sections 193, 219 and 228 of the Indian Penal Code.

15. The Chairman and other members and officers and servants of the Tribunal shall
be deemed to be public servants within the meaning of section 21 of the Indian Penal
Code.

16. In computing period of limitation laid down in sub -section (7) of section 8, and
sub-section (2) of section 11 and sub -section (7) of section 12, the provisions of
sections 4 and 12 of the Limitation Act, 1963, shall, so far as may be, apply.

17. The Tribunal may admit a reference under sub-section (2) of section 8 or entertain
an application for review under sub-section (7) of section 11 or for revision under sub
section (1) of section 12 after the period of limitation laid down in sub- section (7) of
section 8, sub -section (2) of section 11, or as the case may be, sub -section (7) of
section 12 if the party satisfies the Tribunal that the party had sufficient cause for not
making the reference or, as the ca se may be, the application for review or revision
within such period.
Revision.
V of 1908.
Bar of
jurisdiction of
Courts.
45 of 1860.
Proceedings before
Tribunal to be judi-
cial proceedings.
45 of 1860.
Members and
staff of Tribunal
to be public
servants.
Application of
sections 4 and 12
of the Limitation
Act, 1963. XXXVI of 1963.
Extension of period
of limitation in
certain cases.
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18. No suit, prosecution or other proceeding shall lie against the State Government or
the Chairman or other member or officer or servant of th e the Tribunal for anything
which is in good faith done or intended to be done in pursuance of this Act or any
rule or order or regulation made thereunder.

19. (1) If any difficulty arises in giving to the provisions of this Act the State
Government may, by order published in the Official Gazette, make such
provisions, not inconsistent with the provisions of this Act as appear to it to
be necessary or expedient for removing the difficulty.

(2) Every order made under this section shall, as soon as may be after it is
made, be laid before the State Legislature.

20. (1) The State Government may, subject to the condition of previous
publication, by notification in the Official Gazette, make rules for carrying
out the purposes of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules
may be made for all or any of the following matters, namely:-

(a) the salaries and allowances payable to, and other terms and
conditions of service of, the Chairman and other members, under sub -
section (2) of section 4;

(b) the manner of inquiry to be made under clause (b) of sub-section
(3) of section 4;

(c) the salaries and the allowances payable to, and other conditions of
service of, the officers and servants of the Tribunal, under sub -section
(2) of section 6;

(d) the forms in which reference shall be made and the documents and
other evidence and the fees with which it shall be accompanied, under
sub-section (7) of section 8;

(e) any other matter in respect of which the Tribunal may exercise
powers of Civil Court under clause (d) of section 10;

(f) any other matter which is to be, or may be, prescribed.

(3) All rules made under this section shall be laid for not less th an thirty days
before the State Legislature as soon as may be after they are made, and shall
be subject to rescission or to such modifications as the State Legislature may
make during the session in which they are so laid or the session immediately
following.

(4) Any rescission or modification so made by the State Legislature shall be
published in the Official Gazette, and shall thereupon take effect.

21. The provisions of the Arbitration Act, shall in so far as they are inconsistent with
the provisions of this Act, cease to apply to any dispute arising from a works contract
and all arbitration proceedings in relation to such dispute before an arbitrator, umpire,
court or authority shall stand transferred to the Tribunal.

22. (1) The Gujarat public Works Contracts Disputes Arbitration Tribunal
Ordinance, 1991 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the
said Ordinance, shall be deemed to have been done or taken under this Act.

-------------------------

1 For statement of objects and reasons, See Gujarat Government Gazette, Extraordinary, Part V,
Dated the 7th February, 1992, P 2-8
Protection of
action taken in
good faith.
Power to
remove diffi-
culties.
Rules.
Arbitration Act
to cease to
apply.
Guj. Ord. 4
of 1991.
Repeal and
savings.
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 This Act was assented to by the President on the 23rd March, 1992

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