AYUB ALI Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a petition u/S11 (2) and (6) of Arbitration and Conciliation Act, 1996 for appointing a sole arbitrator with regard to the disputes mentioned in the petition in para 9(1-8) as the respondent has failed to appoint an Arbitrator inspite of a notice and reminder. The sole defence of the respondent is that the petitioner's demand for arbitration is hopelessly time-barred. The reliance is placed upon clause 25 of the Arbitration agreement. The relevant extracts of the clause are as under: It is also a term of the contract that the contractors) do/does not make any demand for arbitration in respect of any claim(s) in writing within 90 days of receiving the intimation from the Government that the final bill is ready for payment the claim of the contractors) will be deemed to have been waived and a barred and the Government shall be discharged and released of all liabilities under the contract in respect of these claims."

(2.) The Counsel for the petitioner contends that the period of 90 days should be computed from the date of intimation of the last and final bill which in this case was never done as the last bill was paid on 22.03.1991 withholding the amount of Rs. 2000.00 for quality control observations. Till date the petitioner has not received any other bill accept the bill dated 22.03.1990.

(3.) As against this the Counsel for the respondent-Government contends that the period of 90 days should be computed from the date of the aforesaid bill as in substance this was the final bill and if at all the amount of Rs. 2000.00 was withheld for quality control observations, the duty was cast upon the petitioner No.2to make a request for the said payment. Admittedly the petitioner never made such a request. The amount of the final bill was Rs. 61,314.00.