BHASKAR WIRES PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By way of this petition, the applicant seeks appointment of an independent Arbitrator in terms of Section 11(6) of the Arbitration and Conciliation Act, 1996 for adjudication of disputes and differences between the parties.

(2.) Pursuant to tender notice issued by respondent No. 1, the petitioner submitted its offer to respondent No. 2 for supply of 3000 M.T. of HTS wire of 3 x 3 mm strand (hereinafter called as Goods) as per specification IS: 6006/1983. By letter dated 30.12.1997, the respondent No. 2 made a counter offer to the petitioner for supply of 3000 MT of HTS wire as per specification IS-1785 (Part I) 1983 and IS- 6006 (1983) as per their terms and conditions. The petitioner accepted the offer vide letter dated 2.1.1998. Formal contract was sent to the petitioner by letter dated 18.2.1998 for making supplies in terms thereof. The contract contained an arbitration clause which provides for reference of disputes or differences to the sole arbitration of a Gazetted Railway Officer appointed to be the Arbitrator by the General Manager. The said contract was duly sealed, signed and executed by the petitioner and was delivered to the office of respondent along with its letter dated 23.2.1998. In terms of said contract, the Railway Board issued release orders upon the petitioner for supply of said 3000 Metric Tonnes of Goods in favour of Central Railway to the extent of 2000 Metric Tonnes and South Eastern Railway to the extent of 1000 Metric Tonnes. The respective Zonal Railways issued despatch instructions from time to time for supply of Goods. The petitioner manufactured the goods in terms of instructions received. The Goods were required to be inspected by the concerned Sleeper Manufacturing Units. The concerned sleeper manufacturing units failed and neglected to carry out such inspections. The petitioner called upon the concerned sleeper manufacturing units to make financial arrangement for making payment of the Goods in terms of the contract, which they wrongfully and illegally failed and neglected to do so. In part compliance of aforesaid order passed by the Railway Board, the sleeper manufacturing units attached to the South Eastern Railway lifted only 36 Metric Tonnes of the Goods and the sleeper manufacturing units attached to the Central Railway lifted 1347 Metric Tonnes of the Goods. 1617 Metric Tonnes of the Goods were remain to be lifted by the said Zonal Railways. The respondents failed to fulfil their contractual obligations. Therefore, the contract could not be completed within the stipulated period. Disputes and differences arose between the parties. The petitioner invoked the arbitration clause by way of legal notice dated 1.12.2000. The respondents failed to appoint the Arbitrator. Hence the present petition.

(3.) Notice was issued to the respondents by order dated 20th December, 2001. The respondents entered appearance on 9th July, 2002 and it was brought to the notice of the Court that an Arbitrator was appointed by the respondents on 7th March, 2002. Till date, no reply has been filed by the respondents.