TODARMULL INFRASTRUCTURE PVT LTD , THROUGH ITS AUT Vs. SOUTH EAST CENTRAL RAILWAYS THROUGH ITS GENERAL MA

JUDGEMENT

(1.) This is the application for appointment of arbitrator, under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short, 'the Act').

(2.) South East Central Railway (SECR), the non-applicant herein, invited bids for construction of new Divisional Office Complex and other allied and miscellaneous work in connection with setting up new Division at Raipur. The applicant's bid was accepted and ultimately, an agreement was executed between the parties on 23.08.2007 for execution of work for contract value of Rs. 8,23,30,002/- (Rupees Eight Crore Twenty Three Lakhs Thirty Thousand and Two Only). Acceptance letter was issued with scheduled period of completion of work within 18 months from the date of acceptance letter i.e. from 23.03.2007 to 22.09.2008 providing for applicability of Section 64(1) GCC which provides for demand of arbitrator under Section 61 read with Section 64 of the GCC in accordance with provisions of Arbitration and Conciliation Act, 1996. It is a case of the petitioner that he has completed the work successfully and 'No-Claim Certificate' was issued as required in clause 16(2) of the GCC. The work was executed and certain disputes arose during the course of execution of work between the parties which were not settled amicably and accordingly, the applicant made an application requesting the nonapplicant for appointment of arbitrator on 27.2.2014 which was not done and ultimately, on 09.07.2014 the application for appointment of arbitrator has been rejected on the ground that 'No-Claim Certificate' was signed by the petitioner and, therefore, there is no dispute against the subject work. Upon failure on the part of the non-applicant SECR, the applicant has filed this application under Section 11 (6) of the Act for appointment of arbitrator to dissolve the dispute.

(3.) Learned counsel for the applicant, submits that in appropriate cases, the High Court should appoint arbitrator to resolve the arbitral dispute that has arisen between the parties, therefore, arbitrator be appointed in this application for resolution of dispute between the parties and that 'No Claim Certificate' was signed as a condition for making payment of final bill and the security deposit. Therefore, that would not come in the way of the petitioner.