ASHI P LTD Vs. UNIUN OF INDIA

JUDGEMENT

(1.) This is a petition under Section 20 of the Arbitration Act, 1940 (in short 'The Act') praying for a direction on respondent No. 1 to file the arbitration agreement contained in Agreement No. W-634/12/2/14 dated 25.8.1989 and for making a reference of the disputes and differences between the parties to arbitration and for a direction on respondent No. 2 to appoint the arbitrator in accordance with the arbitration clause.

(2.) The petitioner was awarded work contract for manufacture and supply of 2,50,000 Prestressed Monoblock Concrete Sleepers at a total cost of Rs.2,12,10,000/- only. It appears that the manufacture of the sleepers was not undertaken by the petitioner allegedly owning to the non-availability of suitable site for carrying out the work of manufacturing the sleepers. The contract of the petitioner was short closed vide a communication dated 27/30.3.1992. According to the petitioner, the short closure of the contract was illegal and invalid, which has entitled the petitioner to certain claims in relation to the said contract. The petitioner vide notices dated 5.1.1995 and 18.3.1995 invoked the arbitration and called upon respondent Nos. 1 and 2 to appoint the arbitrator. The respondents having declined to appoint the arbitrator, the petitioner has approached this Court with the present petition.

(3.) The petition is contested by the respondents, inter alia, on the ground that the petition is barred by limitation. On merits it is denied that the short closure of the contract was illegal or there was any default or non-performance of its obligations by the respondents entitling the petitioner to raise any claims against the respondent.