M/S. Yogesh Builders vs Chief Engineer

Mr. Gotati Ram Babu, learned counsel for the applicant.

None for the respondent though served.

This application under Section 11(5) & (6) of the Arbitration and Conciliation Act, 1996 (briefly ‘the A&C Act’ hereinafter) has been filed seeking appointment of an arbitrator to adjudicate the dispute between the parties.

Admittedly, the parties have entered into a contract vide letter of acceptance of tender dated 15.10.2015. Clause 70 of the general conditions of contracts for lump sum contracts (I.A.F.W-2159) term contracts for artificers’ work (I.A.F.W.-1821) and measurement contracts (I.A.Fs.W-1779 & 1779-A) reads as under:

“70. Arbitration - All disputes, between the parties to the Contract (other than those for which the decision of the C.W.E. or any other person is by the Contract expressed to be final and binding) shall, after written notice by either party to the Contract to the other of them, be referred to the sole arbitration of an Engineer Officer to be appointed by the authority mentioned in the tender documents.

Unless both parties agree in writing such reference shall not take place until after the completion or alleged completion of the Works or termination or determination of the Contract under Condition Nos. 55, 56 and 57 hereof.

Provided that in the event of abandonment of the Works or cancellation of the Contract under Condition Nos. 52, 53 or 54 hereof, such reference shall not take place until alternative arrangements have been finalised by the Government to get the Works completed by or through any other Contractor or Contractors or Agency or Agencies.

Provided always that commencement or continuance of any arbitration proceeding hereunder or otherwise shall not in any manner militate against the Government’s right of recovery from the contractor as provided in Condition 67 hereof.

If the Arbitrator so appointed resigns his appointment or vacates his office or is unable or unwilling to act due to any reason whatsoever, the authority appointing him may appoint a new Arbitrator to act in his place.

The Arbitrator shall be deemed to have entered on the reference on the date he issues notice to both the parties, asking them to submit to him their statement of the case and pleadings in defence.

The Arbitrator may proceed with the arbitration, exparte, if either party, inspite of a notice from the Arbitrator fails to take part in the proceedings.

The Arbitrator may, from time to time with the consent of the parties, enlarge the time upto but not exceeding one year from the date of his entering on the reference, for making and publishing the award.

The Arbitrator shall give his award within a period of six months from the date of his entering on the reference or within the extended time as the case may be on all matters referred to him and shall indicate his findings, along with sums awarded, separately on each individual item of dispute.

The venue of Arbitration shall be such place or places as may be fixed by the Arbitrator in his sole discretion.

The Award of the Arbitrator shall be final and binding on both parties to the Contract.”

It is the case of the applicant that despite completion of the work, the amount due to it was not paid. Thereupon, the applicant sent a notice on 11.12.2022 seeking resolution of dispute through arbitration. Respondent did not respond to the notice.

Notice of this proceeding has been served on the respondent. However, none has appeared on behalf of respondent.

The dispute has arisen between the parties which needs resolution through an Arbitrator.

Therefore, Mr. Justice A.Rajasheker Reddy, (resident of Plot No.22A, Road No.12, M.L.A.Colony, Banjara Hills, Hyderabad-33; Mobile No.8331010691) is appointed as sole arbitrator to adjudicate the dispute between the parties.

The parties undertake to appear before the sole arbitrator on 23.12.2023 at 11:00 a.m. along with a copy of this order.

Thereupon, the sole arbitrator shall proceed with the arbitral proceedings in accordance with law.

Accordingly, the Arbitration Application is disposed of. No costs.