2014 INSC 0781
03/11/2015  UNION OF INDIA (UOI) Vs. U.P. STATE BRIDGE CORPORATION LTD.

UNION OF INDIA (UOI) Vs. U.P. STATE BRIDGE CORPORATION LTD.
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                                                  LAWS(SC)20149130            Appellant
                                                Supreme Court Of India    Respondents
                                            Decided on September 16,2014

UNION OF INDIA (UOI)
                                                              VERSUS

U.P. STATE BRIDGE CORPORATION LTD.

JUDGEMENT

Arjan Kumar Sikri, J.  ( 1. ) LEAVE granted.
( 2. ) COUNSEL for the parties have been heard in detail in this appeal. In order to
determine the controversy that is raised in this appeal, which is filed by the Union of India,
challenging the decision dated 03.08.2011 of the High Court, minimal facts which require a
mention, are the following: The Appellant had entered into an agreement with the
Respondent vide which contract for construction of guide bunds, foundation and
substructure of Rail Bridge across river Gangaes near Digha Ghat, Patna and the said
agreement contained various terms and conditions. Clause 64(1)(ii) of the General
Condition of the Contract 2001 (for short 'the GCC'), contained an arbitration clause that is
provided for deciding the dispute between the parties through arbitration by an arbitral
tribunal to be constituted in terms of the said agreement. Disputes arose between the
parties with respect to the said contract and on the request of the Respondent an arbitral
tribunal of the persons was constituted in the year 2007, in which all the members were
Railway authorities. It is a matter of regret that inspite of expiry of four years, the said
tribunal did not complete the arbitral proceeding and the matter kept hanging due to
transfers/retirement/adjournments etc.
( 3. ) THE Respondent felt exasperated due to the prolongation of the matter before the
arbitral tribunal and chose to file Request Case No. 10/2010. Even at the time of filing of
that case, there was a vacancy in the Arbitral Tribunal. When this case was taken up by the
High Court on 09.03.2011, by that time, the Appellant had filled up the said vacancy.
Taking note thereof, the said petition was disposed of by the High Court vide order dated
09.03.2011 giving the last chance to the Arbitral Tribunal to complete the arbitral
proceeding within a period of three months with direction to hold regular sittings at Patna
from the date of receipt/production of a copy of the said order. It was also stated in the
order dated 09.03.2011 that if arbitration proceedings are not completed within the period
fixed by the Court, the Respondent would be at liberty to approach the Court again and the
Court would be constrained to pass appropriate order in accordance with the Arbitration and

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03/11/2015  UNION OF INDIA (UOI) Vs. U.P. STATE BRIDGE CORPORATION LTD.

Conciliation Act, 1996 (hereinafter referred to as 'the Act'). 

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