PRIME ENGINEERS AND CONSULTANTS Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) The petitioner entered into a contract dated 9th May, 1994 with the respondent for the work of construction of residential quarters at New Tehri Township for a sum of Rs. 1,24,51,444.96. The formal agreement was executed on 19th May, 1994. The work was completed in July, 1997. It is alleged that the respondent committed certain breaches of contract and not paid the dues of the petitioner in terms of the contract. Thus disputes arose between the parties. In terms of Clause 5.45 of the General Conditions, the disputes and claims are to be resolved through arbitration. It is alleged that the petitioner raised their disputes and the respondent could not resolved the same amicably. The respondent finalised the bill without considering the claims/disputes. It is stated that the petitioner invoked the arbitration clause on 27th January, 1998 but the respondent failed to appoint an Arbitrator.

(2.) Counsel for the petitioner placed reliance on the judgment reported as M/s. K.L. Khanna and Sons v. U.O.I. and Am., (AA No. 216/97 decided on 24.4.2000), Nitin Construction Co. v. National Agricultural Marketing Federation of India Ltd., 81 (1999) Delhi Law Times 475=1999 (51) DRJ 73, and contended that in view of the law laid down in the said judgments following the judgment of the Supreme Court reported as Union of India v. L.K. Ahuja, AIR 1988 SC 1172, the disputes as raised in the petition be referred to an Arbitrator.

(3.) Counsel for the respondent opposed the petition and contended that the petition is not maintainable as the entire claim of the petitioner has fully satisfied hence nothing survives under the contract. He contended that there are no disputes which remain to be settled between the parties. He placed reliance on the judgment reported as Rajdhani Dal Mill v. M.M.T.C. Ltd., 94 Delhi Law Times 964=2002 (1) Recent Arbitration Judgments 155 (Del).