R.S. Construction Engineers & Another vs Engineer-In-Chief & Another

L. Narayana Swamy , CJ

This petition has been filed for appointment of arbitrator. The petitioners were awarded the contract in the year 2013 and the work was to be completed in the year 2015. Since the petitioners have not completed the work within the stipulated time, they have been reminded time and again to complete the work.

The case of the petitioners is that since the respondents have not released the amount as agreed in terms of the award, they could not complete the work. Hence, this petition has been filed with a prayer to appoint an arbitrator.

Learned Assistant Solicitor General of India submits that part of the amount has already been released and the remaining amount shall be released as soon as the respondents get sanction from the higher authorities. In respect of non-completion of work, learned Assistant Solicitor General of India submits that the petitioners have been provisionally termed as incapable to complete the work.

4 I have heard learned counsel for the parties and gone through the record.

This matter has come up for hearing on an application for interim direction against the disqualification of the petitioners as incapable in completing the work. In this regard, learned Assistant Solicitor General of India submits that the part of amount has been released and the remaining amount would be released after obtaining sanction from the higher authorities. This submission of the learned Assistant Solicitor General of India shows that the dispute between the parties is not matured enough to appoint an arbitrator as the remaining amount, as it is submitted, would be released immediately after obtaining sanction from the higher authorities. In respect of terming the petitioners as incapable, the submission of learned counsel for the petitioners is that the agreed amount has not been released well in time, otherwise the petitioners would have completed the work well within the stipulated time.

Under the aforesaid circumstances, the prayer made for appointment of Arbitrator has not reached the climax, hence, the prayer of the petitioners to appoint the arbitrator is declined. However, the petitioners are permitted to approach the respondents for removal of terminology "incapable" by way of representation, which representation of the petitioners shall be considered and decided by the respondents on the basis of the progress of the work. The respondents are directed to speed up the matter for obtaining sanction from the higher authorities and after obtaining sanction letter, the remaining amount be released in favour of the petitioners. However, it is made clear that the petitioners shall complete the work at an earliest and the respondents shall take steps to release the remaining amount in favour of the petitioners

With these observations, the present petition stands disposed of along with pending application(s), if any.