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M/s. Kochhar Construction Works v. Delhi Development Authority & Another

M/s. Kochhar Construction Works v. Delhi Development Authority & Another

(High Court Of Delhi)

Interlocutory Application No. 425 of 1996 in Suit No. 1455 of 1994 | 16-11-1999

Manmohan Sarin, J.

1. By this order, I would be disposing the application filed by the petitioner under Order XII, Rule 6, CPC as well as the objection of the petitioner that the objections namely IA No. 4145/95 filed by the respondent/DDA are barred by limitation. The petitioners prayer accordingly is that the objections filed by the respondent/DDA be dismissed, i.e. IA 4141/95 be dismissed as barred by limitation and the amount of claims in respect of which the petitioner has not preferred any objections, be paid to the petitioner.

2. The events leading to the filing of the present application may be briefly recapitulated:

The Arbitrator Mr. S.C. Kaushik on 27th May, 1994 made and published his award. It is the petitioners case that a copy of the award was sent by the Arbitrator to both the parties on 31st May, 1994. The petitioner filed an application under Section 14 of the Arbitration Act, 1940, on 29th June, 1994. The Arbitrator in pursuance to the notice, filed the award along with arbitral record on 6th September, 1994, endorsing copy of the same to the respondent/DDA. In any case, the Court directed the issuance of notice of filing of award to the respondent inviting objections if any. The case of the petitioner is that as per the report of the Process Server dated 10th October, 1994, notice of the filing of the award was issued for service to the respondent/DDA, but the receipt clerk/DDA refused to accept the same on the ground that copy of the petition/award was not annexed thereto. In the meanwhile, petitioner had also preferred objections to the award vide IA No. 9008/94. Notice of these objections was served on the respondent/DDA on 25th January, 1995, when the Counsel for DDA was also present in Court. In event, the respondent/DDA filed objections to the award vide IA no. 4145/95 on 22nd February, 1994.

3. Learned Counsel for the petitioner, Mr. Bindra persuasively attempted to urge that the respondent/DDA was fully aware of the making and publishing of the award, the same having been sent to it earlier. He further submits that it was not obligatory to tender either the copy of the petition or copy of the award along with the notice of filing of the award. Refusal to accept such a notice as per the report of the Process Server amounted to service and the respondent/DDA having failed to file objections within time, the award was liable to be made rule of the Court as against the DDA, subject to the decision on petitioners objections.

Learned Counsel for the petitioner in support of his submission relied on Shri Inder Khanna and Sons v. Union of India, reported at 1991 (1) ALR 411, wherein a learned Single Judge of this Court held as under:

On perusal of the order of this Court dated 18th November, 1989, and of the record of the case, in the order, it was observed by the learned Judge that the respondent had not received notice of filing of award on 1st June, 1989, for want of enclosures. No enclosures were enclosed or mentioned in the notice. It was merely a notice of filing of the award and the proceedings. Therefore, according to the learned Judge this amounted to service on the respondent, as the respondent refused to accept the notice of filing of the award. I am in entire agreement with such finding as along with notice of filing of the award no enclosures mentioned in the notice are required to be sent to the parties for service. What is required to be done is due notice to the parties about the filing of the award in the Court. Since statutory period for filing objections had expired and no objections were filed/in those circumstances the award dated 26th October, 1988 made by Shri J.P. Singhal was rightly made rule of the Court and decree was passed in terms thereof and award was made a part of the decree.

4. Mr. Bindra further submitted that in the instant case the respondent have not even moved an application for condonation of delay. He also placed reliance on Kanishka Builders v. Union of India and Another, reported at 1990 ALR 198; Narain Dass R. Israni v. Union of India, 1992(1) 405; and M/s. Rish Prabhat v. Delhi Development Authority, reported at AIR 1995 Delhi 9 to oppose condonation of delay since no ground had either been set up or existed.

5. Learned Counsel for the respondent does not dispute the factual matrix of the case as set out, except the tendering and service of notice at the counter of the DDA. Reply to the application under Order 12, Rule 6 is stated to have been filed in the Registry. The original was not available on record. Learned Counsel for respondent has therefore tendered a report, copy of the same for reference of the Court as well as of the opposite Counsel. The original be traced and placed on record. Learned Counsel urges that no credence ought to have been given to the report of the process server, which was not supported by any other independent witness. Learned Counsel submits that although notice of the objections filed by the petitioner i.e. IA No. 9008/94 was served on the respondent on 16th December, 1994, the same was without a copy of the objections petition and accordingly the respondent could not co-relate the same with the present award. Upon appearing in Court on 25th January, 1995 the petitioner became aware of the full details of the case and filed its objections on 22nd February, 1995. It is thus urged that the objections filed are within time.

6. Having considered the submissions made by the learned Counsel for the petitioner and the authorities relied upon him and having heard the learned Counsel for the respondent, I am of the view, that in these facts and circumstances, it cannot be held that the respondent had been duly served. Even if the petitioners version of refusal by the clerk of the DDA is accepted, what has to be seen is whether the notice that was tendered provided sufficient particulars to the respondent to enable it to file the objections

7. In the instant case the notice sought to be served on the DDA is as under:

IN THE HIGH COURT OF DELHI AT NEW DELHI

In the matter of Suit No. 1455 of 1994, Application No.............. of.............. under M/s. Kochhar Construction Works........... petitioners

versus

Delhi Development Authority and Another... respondents

To,

Delhi Development Authority, service to be affected through the Executive Engineer, Eastern Division No. 8, D.D.A., New Patparganj Depot, Mandawali Fazalpur, Delhi-110092.

WHEREAS Sh. S.C. Kaushal the Arbitrator has filed the award dated 27.5.1994 delivered by the said Arbitrator with arbitration proceedings in Court in disputes inter se you respondent and petitioner for being made a rule of the Court. The suit is fixed for hearing on 30.11.1994 at 11.00 a.m. before the Joint Registrar of this Court.

You are hereby called upon to file objections, if any, in accordance with law to the said award within 30 days of the service of this notice.

Take notice that your failure to do so as stated above would entail the consequences enjoined by law.

Dated this 23rd day of September, 1994.

Superintendent (O)

for Registrar.

8. It would be seen from the notice sought to be tendered that though it mentioned the Executive Engineer of the concerned Division, unfortunately, it made no reference to the construction work in relation to which the award had been made. A Division Bench of our Court had the occasion to consider this aspect in Union of India v. Surender Kumar, reported at 61 (1996) Delhi Law Times 42 (DB) Division Bench. The Division Bench taking note of the existence of the bureaucratic hierarchy as well as the numerous divisions and departments which exist in the Government, formulated guidelines and gave directions which may be usefully reproduced. Although, it was a case where the notice has been sent simply to the Union of India, the observations made by the Division Bench are of relevance:

In the instant case the notice does not specify the name of the work, the division or department to which the matter pertained or even the contract number. It is needless to point out that Ministry of Urban Development has a very large area of operation covering several departments of the Government including C.P.W.D., which itself has several divisions spread all over the country. Therefore, unless the notices-filing of the award gives the details of the arbitration matter in which award is given, it cannot be considered as a proper notice in accordance with law. Besides, it was not enough to direct notice of the filing of the award to the Secretary of the Government of India, Ministry of Urban Development particularly when the notice failed to disclose the material particulars of the matter. In the circumstances, the notice ought to have been sent to the Executive Engineer, who was the Engineer-in-charge of the work, was dealing with the matter.

Having regard to the aforesaid difficulties, we are of the opinion that wherever an Arbitrator renders an award in a matter which concerns the Central Government, a notice should not only be directed to the Secretary of the concerned Ministry but also to the concerned officer who dealt with the matter on behalf of the Union of India before the Arbitrator. The notice of the filing of the award must specify the details relating to the project with regard to which the arbitration was conducted. For this purpose, the party filing the application for directing the Arbitrator to file the award or asking the Court to make the award a rule of the Court should specify the name of project and the officer-in-charge of the same in the cause title of the case so that while issuing notice of the filing of the award the Registry could mention the necessary details of the matter. If these formalities are complied with there will be no scope then for urging the violation of principles of natural justice or for urging that the notice was not in accordance with law.

9. I find that in the present case also the name of the construction work to enable co-relation with the award in question had not been mentioned. The notice as issued, therefore, did not meet the requirements as set out by the Division Bench in its decision. Moreover, in the instant case the respondent is also disputing very factum of service. In these circumstances the authorities cited by the petitioner would be of no avail and the petitioner cannot take any advantage of the same.

10. Accordingly, I hold that the notice, which was sought to be tendered for service was not complete and did not meet the requirements of details required to be given in the notice, inviting objections on filing of the award, as set out by the Division Bench. Accordingly, the application IA 4145/96 under Order 12, Rule 6 of the Code of Civil Procedure is dismissed and the plea of the petitioners that the objections filed by the respondents are barred by limitation, is rejected.

List the objections of both the parties and the suit for disposal on 24th February, 2000.

Advocate List
  • For the Petitioner S.S. Bindra, Advocate. For the Respondents Ansuya Salwan, Advocate.
Bench
  • HON'BLE MR. JUSTICE MANMOHAN SARIN
Eq Citations
  • 2000 1 AD (DELHI) 939
  • 2000 (52) DRJ 292
  • LQ/DelHC/1999/1102
Head Note

A. Arbitration Act, 1940 — S. 31(2) — Notice of filing of award — Sufficiency of — Notice not containing sufficient particulars — Effect — Held, notice, which was sought to be tendered for service was not complete and did not meet the requirements of details required to be given in the notice, inviting objections on filing of the award — Notice not tendered — Respondent disputing very factum of service — Application under O. 12 R. 6, CPC, dismissed — Contract and Specific Relief — Arbitration