KOCCHAR CONSTRUCTION WORKS Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) In this petition under Sections 4,8 & 20 of the Arbitration Act the petitioner has prayed for an order directing the respondents to file the original arbitration agreement and for appointment of an independent arbitrator to decide the disputes arising between the parties since the respondent No.1 has failed to appoint an arbitrator. The petitioner initially filed proceedings under Section 20 of the Arbitration Act in this court which were registered as Suit No.1502/1992. In the said proceedings the respondent herein filed a counter affidavit and contested the proceedings on various grounds including the ground of non-maintainability of the petition because the petitioner was an un-registered firm and also on the ground of limitation contending that the proceeding is barred by limitation. The Single Judge of this court by judgment/order dated 4.11.1993 allowed the suit and issued a direction to the respondent to appoint an arbitrator in accordance with the arbitration clause within 2 months. An appeal was preferred by the respondent before the Division Bench of this court. The aforesaid appeal filed by the respondent was dismissed holding that the subsequent registration of the petitioner cured the initial defect since that was within the period of limitation.

(2.) Being aggrieved by the aforesaid order passed by the Division Bench a Special Leave Petition was preferred by the respondent before the Supreme Court which was registered as Special Leave Petition (Civil) No.22167/1994. The aforesaid special leave petition was allowed by the Supreme Court by its order dated 18.1.1996. The Supreme Court set aside the order of the High Court and held that the proceedings were ab initio defective as the said proceedings could not have been instituted since the firm in whose name the proceedings were instituted was not registered on the date of institution of the proceedings. The petitioner obtained registration of the firm on 26.2.1993, when the appeal filed by the respondent was pending before the Division Bench of this Court.

(3.) In the present petition filed by the petitioner, it is stated that the parties entered into a contract with the respondent for work relating to the construction of some buildings and that the petitioner completed the construction on 18.11.1985. It is also stated that there is an arbitration clause in the said agreement between the parties being clause No.25 which provides that all questions and disputes relating to the contract are to be referred to and decided by an arbitrator appointed by the Engineer Member, DDA at the time of dispute. Since the petitioner has acquired its registration and a suit by a registered firm is maintainable, the disputes arising between the parties should be referred to and be adjudicated upon by a sole independent arbitrator to be appointed by this court. The petitioner alongwith the aforesaid petition has filed an application under Section 5 read with Section 14 of the Limitation Act praying for condonation of delay in filing the petition under Section 20 of the Arbitration Act.