BUDHIRAJ ELECTRONICALS Vs. RITES

JUDGEMENT

(1.) The present petition seeks relief of issuance of directions to the respondent to file original agreement dated June 20,1990 and for reference of disputes to the Arbitrator as provided in that agreement. The respondent has filed the reply wherein the main objection which is taken is that as per clause 25 of the agreement, if the Contractor does not make any demand for arbitration in respect of any claim(s) in writing within 90 days of receiving the intimation from the Government that the bill is ready for payment,the claim of the contractor will be deemed to have been waived and absolutely barred and the Government shall be discharged and released of all -liabilities under the contract in respect of these claims.

(2.) The petitioners, it is contended, did not raise disputes within the stipulated period and, therefore, the reference of disputes to arbitration is not maintainable. Learned counsel for petitioner has cited the judgment of this Court reported in Jai Chand Bhasin Vs. Union of India and another, AIR 1983 DELHI 508 which lays down that the court is not concerned with the question whether the claim of the party to the arbitration agreement is barred by time. The question falls within the province of the Arbitrator to whom the dispute is referred, Paragraph 9 of the judgment may be reproduced as under:-

(3.) The order plea is also with regard to the maintainability of the reference in view of the fact that the petitioner had given No Claim Certificate while accepting final payment. The judgment of the Supreme Court as reported in Union of India & another Vs. M/s. L.K.Ahuja and Co., AIR 1988 SUPREME COURT 1172 keeps it open for the Arbitrator to adjudicate upon this contention as well. Paragraph 8 of this judgment may be reproduced as under:-