UNION OF INDIA Vs. M P GUPTA

JUDGEMENT

(1.) This appeal by the Union of India & Another is directed against the judgment dated November 20,1997 passed by the learned Single Judge appointing Justice P.K. Bahri (Retd.) as arbitrator to adjudicate upon the claims mentioned in para 3 of the judgment.

(2.) Indisputably petition under Section 20 of the Arbitration Act, 1940 (for short the 'Act') was filed byM.P. Gupta, respondent, inter alia, alleging that in response to an invitation to tender for execution of the work of "Zone No. I: Supplying and stacking hand broken stone ballast (hard stone ) conforming to N. RIy. CE's Circular No.170/P. way along cess/toe from Km 1/0 to Km 50/0 and in ballast depot at Mandore as per N. RIy. Standard specifications and special tender condition in connection with Jodhpur Jaisalmer B.G.Conversion Project. 5000 cum and 45400 cum", he submitted the tender which was accepted by the Chief Ailministrative Officer, Headquarter Office, N. RIy, Kashmere Gate, Delhi, for and on behalf of the President of India. An agreement bearing No. 74-W/GC/8/JU-JSM/WA dated August 17,1994 containing, arbitration clause was executed between the parties. On dispute having arisen, by the letter dated August 29, 1995 the respondent invoked arbitration clause and asked the appellants to appoint arbitrator and to refer the claims annexed with the letter to arbitration. Said letter was followed by a reminder dated September 6, 1996. Appellants, however, failed to appoint the arbitrator till date. It was prayed that the appellants be directed to file the arbitration agreement in court and the disputes/ claims as detailed in para 12 of the petition be referred to arbitration in terms of arbitration clause No.64 of the agreement.

(3.) Considering the affidavit filed by the respondent the petition was allowed against the appellants who were proceeded ex-parte, in terms of the judgment under appeal.