People Co-operative Labour and Const. Society Ltd. Vs. Union of India and 2 ors. - Court Judgment

Excerpt:
arbitration act, 1940 - section 41--code of civil procedure--order 2 rule 2--all disputes/claims not included at the first instance--subsequent application under section 20 to refer fresh claims--whether barred by order 2 rule 2 ;the petition under section 20 of the arbitration act sought to refer certain additional disputes not included in the first instance. the issue arose as to whether the claims were barred by res-judicata and by order 2 rule 2 of the cpc.;dismissing the suit, the court;section 41 of the arbitration act provides that the provisions of code of civil procedure shall apply to all proceedings before the court under the arbitration act. the petitioner should have included this dispute also in the previous suit. this was not done. it necessarily follows that this dispute/claim shall be deemed to have been abandoned. as such the present suit is clearly barred under order 2 rule 2 cpc. the petitioner cannot now ask for the second reference in respect of the dispute which was available to him and was not included in the previous suit. - chaudhry, j.(1) this is a petition under section 20 of the arbitration act seeking direction to the respondents to file the arbitration agreement and for reference of the additional disputes to the arbitration for adjudication. it is alleged that the petitioner entered into a contract for the work of 'formation of designed section of ghazipur drain & desalting of connate from r.d.o. to r.d. 6180m'. the work was awarded on 20-3-1982 and the date of starting the work was to be reckoned from the 7th day from the date of award, i.e., from 27-3-1982 as per terns of the agreement. in terms of the agreement the work was to be completed within 4 months, i.e., by 26-7-1982, but it was actually completed on 6-7-1982. according to the petitioner they performed the contract to the entire satisfaction of the department but at the time of making payment, the department did not make the payment as per the work executed by them. disputes arose between the parties. the petitioner invoked the arbitration clause. but the arbitrator was not appointed by the appointing authority. thereafter the petitioner filed a petition under section 20 of the arbitration act in this court (being suit no. 369/l983). in that petition, the petitioner raised 7 dispute claims which were required to be referred for arbitration. in the petition a note was also appended which reads as under :-