UTTAM SINGH DUGGAL AND CO PRIVATE LIMITED Vs. UNITED STATES OF AMERICA AGENCY OF INTERNATIONAL DEVELOPMENT

JUDGEMENT

(1.) On 15th January 1969, M/s. Uttam Singh Duggal & Co. Pvt. Ltd. (hereinafter called 'the conttractors' had entered into a contract with the United States of America Agency for International Development (hereinafter called 'the US AID') for the construction of US AID staff house and apartments projects near Mehrauli, New Delhi. The contract contained an arbitration clause which reads as under: Notice of the demand for arbitration of a dispute shall be filed in writing with the other party to the contract. The demand for arbitration shall be made within a reasonable time after the dispute has arisen; in no case, however, shall the demand be made later than the time of final payment, except as otherwise expressly stipulated in the contract. In all cases the Contracting Officer. US AID, Mission to India, shall be the sole arbitrator."

(2.) Disputes arose between the parties. The contractors called upon the US AID to refer the disputes to arbitration in accordance with arbitration clause. The Charge d' Affairs ad interim. Embassy of the United States of America. New Delhi, wrote to the contractors that the U.S. Government does not, due to statutory restriction, submit disputes of this type to formal arbitration.

(3.) The contractors have filed a petition under section 20 of the Arbitration Act for the filing of the arbitration agreement in Court and for the reference of the disputes to arbitration in accordance with law.