AHULWALIA CONTRACTS INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) -

(2.) M/s. Ahluwalia Contracts (India) Limited, a Company incorporated under the provisions of the Companies Act, 1956, having its registered office at B-4/205, Safdarjung Enclave, New Delhi (hereinafter referred to as 'the Petitioner Company') has filed the present petition under Section 20 of the Arbitration Act, 1940 (hereinafter referred to as 'the Act. averring that the Petitioner Company carry on the business of construction, engineering and designing and that the Petitioner Company are a builder of international repute and have earned a big name in the above said business. It is alleged that the Petitioner Company submitted tender for the construction of 'Central Institute of Education Technology at NCERT Campus, New Delhi to Respondent No. 1 Union of India, through Respondent No. 2, i.e. the Construction Engineer, Civil Engineering Division, Department of Space, Ahmedabed, which was accepted by the above said respondents on 12th August, 1986. It is further alleged that after the execution of the 'Contract Agreement' the Petitioner Company commenced the construction of the said project and completed the same on 28th February, 1989 to the satisfaction of the respondents and the same was duly handed over to the respondents. It is alleged that the Petitioner Company have raised the following claims on the respondents who have failed to settle the same as a result of which disputes have arisen between the parties:- <FRM>JUDGEMENT_363_DLT59_1995Html1.htm</FRM> In addition to the above claims, the Petitioner Company have also claimed pre suit interest @10% per annum and pendente lite and future interest @18% per annum. It is alleged that there is a valid arbitration agreement between the parties, as contained in Clause 25 of the Contract Agreement, and all the above stated disputes are covered within the said arbitration agreement. The Petitioner Company have further averred that in terms of the above stated arbitration agreement, the Petitioner Company vide notice dated 27th January, 1992 called upon the respondents to appoint the Arbitrator within 15 days of the receipt of the notice. However, despite due service of the said notice the respondents failed to appoint the Arbitrator as a result of which the Petitioner Company was left with no other alternative but to approach this Court under Section 20 of the Act for filing the Arbitration Agreement in the Court and reference of the above said disputes between the parties to arbitration. It is averred that this Court has jurisdiction to entertain and try the matter because the cause of action arose at Delhi and the parties also carry on business at Delhi.

(3.) LN view of the above discussion the petition is allowed and it is ordered that the Chief Engineer, Department of Space, Bangalore to appoint an Arbitrator as contemplated under Clause 25 of the Contract Agreement within two months from the date of the passing of the order. The Arbitrator so appointed, will immediately enter on his duties and dispose of all the reference/disputes between the parties within the stipulated time. The Arbitrator so appointed shall also decide the question as to whether the demand for arbitration has been made within the stipulated time and whether the claim of the Petitioner Company should be deemed to have been waived in terms of the provisions of the above said Clause of the Contract Agreement In case, the Chief Engineer fails to appoint the Arbitrator within the above said period, Shri. M.L. Jain, a retired Judge of this Court shall be the Arbitrator. In the circumstances of the case, there should be no order as to costs.