PRAGATI STEELS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE present petition is filed by the petitioner under Section 11(6) of the Arbitration and Conciliation Act, 1996 (in short 'the Act') praying inter alia for appointment of an Arbitrator to adjudicate the disputes between the parties.

(2.) IN a nutshell, the facts of the case are that in the year 2000, the respondent, Northern Railways invited tenders for supply of 29,00,000 numbers of Metal Liners. The petitioner was also one of the tenderers. The tender of the petitioner was accepted by the respondent, who issued a purchase order dated 20.3.2001 for supply of 4,50,000 numbers of Metal Liners. It is the case of the petitioner that it supplied a total quantity of 1,40,000 numbers of Metal Liners to the respondent and was willing to supply the balance quantity of 3,10,000 numbers of Metal Liners for which it sought extension of time, vide letter dated 6.2.2003. However, the respondent cancelled the contract for the balance quantity, vide its letter dated 10.2.2003.

(3.) AFTER receipt of the aforesaid notice, the respondent, vide letter dated 11.5.2005 appointed Shri Ved Prakash as the Sole arbitrator. However, the Sole arbitrator did not enter upon reference. Hence, the petitioner issued a legal notice dated 16.10.2006 to the General Manager of the respondent calling upon him to appoint another arbitrator in place of Shri Ved Prakash. It is stated that though the respondent issued a reply dated 26.10.2006, it failed to appoint any arbitrator, thus compelling the petitioner to file the present petition.