BESTECH INDIA PRIVATE LIMITED Vs. MGF DEVELOPMENTS LTD

JUDGEMENT

(1.) THE present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short "the Act ") has been filed by the petitioner for appointment of an Arbitrator. There is a contract dated 5th December, 2000 having arbitration clause 49 and 51 which read as under:- Clause 49: "Except where otherwise provided, all disputes arising out of or relating to the contract, instructions or orders of Site engineers/Architect, or the execution or failure to execute the same, whether arising during the progress of the work or after completion or abandonment thereof shall be referred to a Sole Arbitrator to be appointed by accepting authority. The Arbitrator shall conduct proceedings as per the Arbitration Act, 1940 or any statutory modification or amendment to it from time to time. " Clause 51:

(2.) THE brief facts are that certain disputes arose in relation to two contracts regarding civil construction, fire fighting and plumbing work in terms of which an alleged claim of Rs. 3,21,11,007/- of the petitioner is outstanding towards respondents 1 and 2. M/s. Bestech India Pvt. Ltd. is a Pvt. Ltd. Company. According to the petitioner, the said company was earlier known as M/s. Bestech Engineers and Contractors (a Partnership firm) and the said Partnership Firm had originally executed a contract with the respondents. The said partnership firm was taken over by the petitioner as an ongoing concern on 1st October, 2001 which executed the work relating to the present contract.

(3.) THE final bill No. 7 and 8 were raised and certificate of payment was issued by the respondent through their Agent and Project Manager M/s. Vastu Kriti for a sum of Rs. 7,99,22,509/- and Rs. 1,03,69,650/- respectively. Against these bills, a sum of Rs. 5,81,81,000/- was released by respondent No.1 and 2 in various instalments and balance of Rs. 3,21,11,007/- is outstanding towards respondents.