RAJDEEP INDUSTRIES Vs. AIRPORT AUTHORITY OF INDIA

JUDGEMENT

(1.) THE present petition is preferred by the petitioner under Section 11 (6)of the Arbitration and Conciliation Act, 1996 praying inter alia, for appointment of an Arbitrator in terms of Clause 25 of the Agreement which is reproduced hereinbelow:

(2.) IT is the case of the petitioner that the respondents invited tenders for construction of composite structure for 60 meters Span Hanger in structural steel and abutting two storey building on RCC framework at IGI Airport, New delhi. The petitioner participated in the said tender and was the successful bidder. Accordingly, the parties entered into a contract dated 12th June, 1995. The date of start of work was 21st June, 1995 and the stipulated date of completion was 20th December, 1996. It is stated that due to delay on the part of the respondents, the work got prolonged and could be completed only on 20th november, 1998. The part final bill was prepared by the respondents on 19th april, 1999 and a sum of Rs. 3,72,018/- was paid to the petitioner. In the meantime, the respondents vide their letter dated 18th January, 2005 addressed to the petitioner, informed the petitioner that extension of time w. e. f. 21. 12. 1996 to 20. 11. 1998 was granted by the Competent Authority to the petitioner without levy of penalty. Further, penalty of Rs. 93,716/- was also waived off and thereafter a compensation of Rs. 21,43,476/- under clause 10 CC was paid to the petitioner, vide cheque dated 1. 8. 2007, which pertained to the period before 19. 4. 1999.

(3.) COUNSEL for the petitioner states that the respondents have not cleared the remaining bills of the petitioner as enclosed with the notice dated 27th october, 2007, whereby the petitioner called upon the respondents to appoint an arbitrator to adjudicate the disputes between the parties. He submits that despite receipt of the aforesaid letter, the respondents did not appoint an arbitrator, thus compelling the petitioner to file the present petition.