EARNEST BUILDERS (PVT.) LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition under section 11 (6) of the Arbitration and Conciliation Act (The Act) has been filed by the petitioner to seek reference of its disputes with the respondent to arbitration in terms of an arbitration agreement contained in the contract agreement number CWE/PM/N.18/98-99.

(2.) IT is the admitted position that the parties had entered into the aforesaid agreement which contains an arbitration agreement in clause 70 of the IAFW-2249. Under this clause disputes between the parties to the contract shall, other than disputes in respect of which the decision of the CWE or any other person is, by the contract expressed to be final and binding, after written notice by either party to the contract to the other, be referred to the sole arbitration of any serving officer having degree in engineering or equivalent on having passed final/direct final examination of subdivision II of Institute of Surveyor (India) recognized by the Government of India, to be appointed by the authority mentioned in the tender document.

(3.) THE arbitrator entered upon the reference on the 16th September, 2003. However, he resigned from the post of arbitrator vide his communication dated 12th April, 2004. The petitioner thereafter once again requested the chief engineer to refer all his claims to a new arbitrator vide his communication dated 24th April, 2004 and reminder dated 25th April, 2005 but to no avail.