HASHNINE SYSTEMS PRIVATE LIMITED Vs. INDIAN AIR FORCE

JUDGEMENT

(1.) The present petition has been preferred seeking appointment of an Arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 for adjudication of disputes which have arisen between the parties.

(2.) The case of the petitioner in nutshell is that respondent has arbitrarily invoked the Bank Guarantee No. 00960100000226 dated 14.03.2014 for an amount of Rs 21,36,100/- and Bank Guarantee No. 00960100000249, dated 26.06.2014 for an amount of Rs.10,68,035/- and its various efforts to approach the respondent to resolve the disputes, went in vain. In such circumstances, petitioner sent a Legal Notice dated 16.11.2018 to respondent to refund amount of Rs.32,04,135/- along with the @18% and further sent a notice dated 02.03.2020 to either make the payment within 15 days or consider the notice as 'Notice Invoking Arbitration under Clause 3 of the Part III -Standard Conditions of Supply Orders No. EAC/SO POV /03/2013-14 dated 03.03.2014 (12 Bases) (Main Order) and EAC/SO POV /01/2014-15 dated 26.05.2014 (Repeat Order)'.

(3.) In terms above, respondent was called upon to appoint an Arbitrator within sixty days to adjudicate the dispute(s) which arose between the parties in terms of aforesaid Clause-3. However, since no reply to the notice dated 02.03.2021 was received and respondent did not appoint an Arbitrator in accordance/ conformity with the provisions of the Arbitration and Conciliation Act, 1996, the present petition has been preferred.