LALL CONSTRUCTIONS CO Vs. GENERAL MANGER

JUDGEMENT

(1.) The Petitioner M/s. Lall Constructions Co. has moved the present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act?) for the appointment of an impartial and neutral Arbitrator to arbitrate upon the disputes between the parties.

(2.) The instant dispute arises out of a contract bearing No.74- W1/1/397/WA/UMB dated 01.08.2007 which was awarded to the Petitioner by the Respondent for "Supplying and laying blanketing material 600 mm thick over top of formation from Km 0.00 to Km 16.250 in connection with Abohar-Fazilka new BG Railway line." A copy of the letter of intent dated 25.05.2007 along with a copy of the aforesaid contract containing the arbitration clause, viz., Clause No.64 of Northern Railway General Conditions of Contract 1999 is enclosed with the petition. The Petitioner claims that upon completion of the execution of the work on 15.08.2009 in all respects, the Petitioner by its letters dated 17.12.2009 and 11.01.2010 addressed to the Deputy Chief Engineer/Construction, Ambala Cantt requested for the release of the security deposit. By his letter dated 23.01.2010, the Deputy Chief Engineer certified to the Chief Engineer concerned as under:-

(3.) In terms of the said certificate, the Deputy Chief Engineer, Ambala Cantt prepared Pay Order No.109379 dated 04.02.2010 for the release of the security deposit and submitted the same to the Accounts Branch. Instead of passing the Pay Order for refund of security deposit, the Senior Assistant Financial Adviser vide letter dated 05.02.2010 returned back the Pay Order stating that as per Railway Board Instructions security deposit may be released only after passing of final Bills. The Petitioner by letter dated 09.02.2010 protested against the imposition of this condition linking the release of the security deposit of Rs. 42,43,850/- and performance guarantee of ' 42,43,850/- with the passing of the Final Bill and the amounts payable from Running Bills which had been held up.