SINGH BUILDERS SYNDICATE Vs. UNION OF INDIA

JUDGEMENT

(1.) DISPUTES have arisen between the parties and in terms of clause 64 of the general terms and conditions of the contract which is an arbitration clause, the Arbitral Tribunal (hereinafter referred to as 'the tribunal') was constituted consisting of three arbitrators, one nominee each of the petitioner and the respondent and third as an umpire. This happened in the year 2003 on a petition filed by the petitioner. However, according to the petitioner, ever since the constitution of the tribunal, the tribunal has not been able to proceed with the matter. This impasse is created only because the first nominee of the petitioner (the petitioner has to nominate a person out of the panel provided by the respondent) was transferred; second arbitrator nominated in his place was also transferred and on his transfer even when the petitioner communicated of its choice on 9th September, 2005, the respondent has not acted thereon. According to the petitioner, as because of this the tribunal has not at all proceeded, mandate of the tribunal has terminated within the meaning of Section 14 of the Arbitration and Conciliation Act, 1996(for short 'the Act') and prayer made in this petition is to appoint an independent/sole arbitrator. I may take note of the facts in some detail to appreciate the respective cases of the parties

(2.) THE petitioner was awarded a contract by the respondent/UOI through the Northern Railways pursuant to which the petitioner did some construction work in the year 1998. Disputes arose between the parties. Relevant portions of clause 64 of the general, terms and conditions of the contract which provide for arbitration are in the following terms:

(3.) IN this application, the respondent pointed out that it had written a letter dated 3rd March, 2003 suggesting a panel of four names to the petitioner out of which the petitioner could appoint a co -arbitrator which was followed by subsequent letters and only on 29th September, 2003 the petitioner gave its consent for nomination of Sh. A.K. Mishra, CE/PED, Northern Railways, Baroda House, New Delhi to act its nominee arbitrator. In view of this, the petitioner did not press the petition after recording the submission of the respondent's counsel that the respondent would ensure expeditious arbitral proceedings. Following tribunal was accordingly constituted: