R.N. GUPTA 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 praying inter alia for appointment of an arbitrator to adjudicate upon the disputes and differences between the parties.

(2.) BRIEFLY stated, the facts of the case are that the petitioner is in the work of construction and entered into an agreement with the respondent for execution of construction of office building for NATP at CTP Complex, Pusa, New Delhi - 110012 on a tendered amount of Rs. 1,63,85,453. As per the agreement the date of commencement of the work was 26.04.2003 and the date of completion was 25.10.2003. As per the counsel for the petitioner, the petitioner started and completed the work on 08.03.2004, to the satisfaction of the respondent. Thereafter, the petitioner submitted a statement of claim to the respondent, vide letter dated 26.08.2005, claiming a sum of Rs. 8,66,550. It is stated that despite the aforesaid demand, the respondent did not release the payment to the petitioner and as a result, the petitioner issued a legal notice dated 27.01.2007 to the respondent invoking Clause 25 of the agreement which provides for appointment of an adjudicator to decide the disputes between the parties within a period of 28 days of the receipt of a notification of a dispute.

(3.) CONSIDERING the fact that the respondent has failed to appoint an arbitrator in terms of Clause 25.3(f) of the agreement governing the parties, this Court has no option but to allow the present petition and appoint an arbitrator to adjudicate the disputes between the parties.