VAISH BROTHERS Vs. UNION OF INDIA

JUDGEMENT

(1.) APPOINTMENT OF AN ARBITRATOR IS CLAIMED BY THE PETITIONER BY THIS PETITION UNDER SECTION 20 OF THE ARBITRATION ACT, 1940. THE PETITIONER IS A CONTRACTOR AND RESPONDENT NO.1 IS A MILITARY ENGINEER SERVICES AN ORGANIZATION UNDER MINISTRY OF DEFENCE AND RESPONDENT NO.2 IS TH ENGINEER IN CHIEF OF RESPONDENT NO.1. TENDERS WERE INVITED BY RESPONDENT NO.1 FOR THE WORK OF CONSTRUCTION OF PRODUCTION SHOP AT PROJECT SITE IN ANDHRA PRADESH. THE PETITIONER BEING A ELIGIBLE CONTRACTOR PARTICIPATED IN THE TENDER AND SUBMITTED HIS TENDER AND UPON ACCEPTANCE OF THE TERMS OF THE TENDER, THE SAME WAS AWARDED TO THE PETITIONER BY VIRTUE OF THE ORDER DATED 15TH FEBRUARY 1985. IT IS NOT DISPUTED THAT THE WORK WAS COMPLETED BEYOND THE STIPULATED TIME AND THE PETITIONER THEREAFTER RAISED CERTAIN DISPUTES WHICH WERE NOT REFERRED TO ARBITRATION LEADING TO THE PRESENT PETITION.

(2.) THE PETITIONER HAS RELIED UPON CLAUSE 70 OF THE GENERAL CONDITIONS OF CONTRACT IAFW 2259 WHICH INDISPUTABLY IS THE ARBITRATION CLAUSE COMPRISED IN THE AGREEMENT BETWEEN THE PARTIES. THE RELEVANT PORTION OF THE SAID CLAUSE 70 READS AS UNDER:

(3.) IT IS THE PETITIONER'S CASE THAT THE DEMAND FOR APPOINTMENT OF AN ARBITRATOR WAS RAISED BY THE PETITIONER BY ITS LETTER DATED 31ST DECEMBER 1990 WHICH ALSO LISTED THE CLAIMS RAISED. HOWEVER, PARAGRAPH 2 OF THE SAID LETTER ACKNOWLEDGED THAT THE FINAL BILL HAD BEEN PAID THOUGH SAID TO BE UNDER PROTEST.