SATYANARAYANA CONSTRUCTION CO Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an appeal from the judgment passed by the Division Bench of the Andhra Pradesh High Court on 8-4-2005, Union of India v. Satyanarayana Construction Co., 2005 2 ArbLR 496.

(2.) The appellant, M/s Satyanarayana Construction Co. (for short '"the contractor") was awarded a contract for earthwork in formation and miscellaneous works from Ch. 24,150 m to Ch. 27,700 m between Dharur and Rukmapur Stations. The work was to be completed by the contractor by 21-5-1997 but it was extended from time to time and the last date for completion of the work, as per extended time, was 31-3-1998. According to the contractor, except for few minor works that remained to be verified, it completed the work by 31-3-1998 but the respondents did not pass the final bill.

(3.) For resolution of the disputes in relation to the above contract, the contractor sought appointment of an arbitrator but the arbitrator was not appointed by the respondents. The contractor, then, approached the Chief Justice of the Andhra Pradesh High Court by filing an application under Section 11 of the Arbitration and Conciliation Act, 1996 (for short "the 1996 Act"). After hearing the parties, the Chief Justice allowed the application made by the contractor under Section 11 of the 1996 Act and appointed Justice Shri T.N.C. Rangarajan, retired Judge of the High Court, as an arbitrator.