M/S SARDAR CONSTRUCTION CO.versusSTATE OF GUJARAT
- Citation
- 1999 INSC 23
- Decided
- 25 January 1999
- Disposal
- Dismissed
Holding
Since the award had not attained finality when the 1992 Act came into force, Section 21 transferred the pending arbitration proceedings to the Tribunal, and under Section 8 the Tribunal’s award is deemed a decree under the CPC.
Summary
Miss Sardar Construction Co. entered into a works contract with the State of Gujarat and an arbitration award was made before 1 January 1994, the date on which the Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 came into force. The award had not become final when the Act became operative. The petitioners sought special leave to appeal against the High Court’s order transferring the pending arbitration proceedings to the Tribunal under Section 21 of the 1992 Act. The Supreme Court held that the provisions of the 1992 Act applied to disputes arising from works contracts even if the award was rendered before the Act, provided the award had not attained finality. Consequently, the arbitration proceedings were correctly transferred to the Tribunal, and under Section 8 the Tribunal’s award is deemed a decree within the meaning of Section 2 of the Civil Procedure Code, 1908. The petition was dismissed.
Issues considered
- Whether the Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 applies to an arbitration award rendered before its commencement but not yet final.
- Whether pending arbitration proceedings must be transferred to the Tribunal under Section 21 of the Act.
- Whether the Tribunal’s award is deemed a decree under the Civil Procedure Code.
Legislation cited
Subjects
Judgment
-
MIS SARDAR CONSTRUCTION CO. A
v.
STATE OF GUJARAT
JANUARY 25, 1999
[MRS. SUJATA V. MANOHAR AND R.C. LAHOTI, JJ.] B
Gujarat Public Works Contracts Disputes Arbitration Tribunal Act,
1992 : Sections 8 and 21.
Arbitration Proceedings-Pendency of-Award given before commence- C
ment of 1992 Act-Award not attaining finality wizen 1992 Act came into
force-In-applicability of provisions of Arbitration Act-Transfer of proceed-
ings to Trib1111al under 1992 Act-Held valid.
CIVIL APPELLATE JURISDICTION Petitiort(s) for Special
Leave to Appeal (Civil) No. 14668/98. D
"-· From the judgment and order dated 01.05.98 in CRA 2283/95 of the
High Court of Gujarat at Ahtnedabad;
K. Janani for the Petitioner:
E
KG.Shah, AP. Medh and Mrs. Suchitra A. Chitale for the Respon-
dents.
The following order of the Court was delivered :
The award in the present case, though given prior to 1.1.1994 which F
is the date of commencement of the Gujarat Public Works Contracts
Disputes Arbitration Tribunal Act, 1992, had not attained finality at the
time when the said Act came into force. Under Section 21 of the said Act,
the provisions of the Arbitration Act shall, insofar as they are inconsistent
with the provisions of the Act, cease to apply to any dispute arising from
a works contract and all arbitration proceedings in relation to such dispute G
before an arbitrator, umpire, Court or authority shall stand transferred to
,J'
". the Tribunal. In the present case, the arbitration proceedings in relation to
the dispute were pending before the court and hence the High Court has
rightly transferred these proceedings to the Tribunal. Under Section 8 of
the said Act on reference to the Tribunal, the Tribunal has to make an H
233
234 SUPREME COURT REPORTS [1999) 1 S.C.R.
A award which shall be deemed to be a decree within the meaning of Section
2 of Civil Procedure Code! 1908 and it shall be executed accordingly.
We, therefore, agree with the reasoning and ccnclusion of the High
Court. The S.L.P. is dismissed.
T.N.A. Petition dismissed.
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