IVRCL LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter called as "Act of 1996") for appointment of arbitrator to resolve the dispute arisen between the parties herein.

(2.) The applicant (IVRCL Ltd) and respondent (SECR) have entered into an agreement on 27.1.2005. The agreement signed in between the parties had made the General Conditions of Contract (hereinafter called as "GCC") and Standard Specifications as the part of the contract agreement. The subject conditions of the contract agreed and signed in between the parties contained an express provision that the Special Condition and Schedule of Work under the contract is in addition to and / or an part supersession of the GCC. The rights and obligations, in particular the agreed procedure of dispute resolution by way of Arbitration Clause contained in clause 16 of the Special Conditions of Contract (hereinafter called as "SCC").

(3.) Admittedly, the value of the contract at the time of award was Rs. 3077.00 (Rupees Thirty Crores Seventy Seven Lacs approx.). The appellant raised a claim of Rs. 13,72,44,915/- and made a request for appointment of arbitrator by letter dated 24.10.2013. The applicants by memo dated 24.4.2014 also raised a demand for appointment of arbitrator under clause 64(1) (i) of the GCC. The respondent by its memo dated 18.6.2014 rejected the prayer for appointment of arbitrator holding that the applicant has already signed 'No Claim Certificate' and in the light of clause 43(2) of the GCC read with clause 16.2 of the SCC claim exceeds 20% of the value of contract, therefore, dispute is not arbitrable and as such, claims are barred by application of clause 63 and 64 of the GCC. With these facts, application for appointment of arbitrator under Section 11(6) of the Act of 1996 has been filed.