M/S. N.B. CONSTRUCTION COMPANY Vs. THE KARNATAKA STATE AGRICULTURE PRODUCE PROCESSING AND EXPORT CORPORATION LIMITED

JUDGEMENT

(1.) The petitioner has filed the present Civil Miscellaneous Petition under the provisions of section 11(6) of the Arbitration and Conciliation Act, 1996 to appoint sole Arbitrator to adjudicate upon the dispute in terms of agreement dated 29.12.2015 entered into between the parties.

(2.) It is the case of the petitioner that the respondent has invited tender notice dated 20.03.2015 for the construction of warehouse facility at Plot No. 1 in R.S. No. 24/2 and 24/10 of Kangrali B.K. Industrial Area, Belagavi District. In response to the said tender notice, the petitioner submitted its tender on 04.05.2015. On 21.12.2015 the respondent accepted the offer of the petitioner and in terms of said work indent, the approximate value of the work was Rs. 13,26,52,161/- and the work should be completed within 12 months from the date of work initiated i.e., on or before 20.12.2016. In view of the above, both the petitioner and respondent have entered into the agreement dated 29.12.2015. The general conditions of the contract, the special conditions and specifications of the contract appended to the agreement govern the contract. The Clause 4 (Clause-24) of Special Conditions of contract of the contract agreement contemplates resolution of disputes if any through arbitration.

(3.) It is further case of the petitioner that on 12.05.2013 and 01.06.2016, the petitioner states that respondent did not provide required relevant drawings and site to commence the work which are most required without which the work could not be commenced. On 12.08.2016 after lapse of eight months from the date of the work order, the respondent has put the petitioner to notice about cancellation of the work order due to litigation of the land. Therefore, the petitioner submitted his statement of claims before respondent and respondent has not complied his part of the obligation in terms of the agreement. Therefore, petitioner issued legal notice dated 25.10.2016 invoked arbitration under Clause 4 (Clause-24) of Special Conditions of contract requesting respondent to pay the amounts due or refer the matter to arbitration under the above Clause. In response to the same, respondent issued a reply letter expressing regret for the inconvenience in canceling the work order and requested to draw the kind attention of the petitioner to the Clause 52.1 of the tender document regarding release from the performance of the contract. Hence, the present civil miscellaneous petition is filed for the relief sought for.