VEENU CONSTRUTIONS Vs. ARUNA COOPERATIVE GROUP

JUDGEMENT

(1.) PRESENT petition had been filed in the year 1992 under Sections 8, 9 and 20 of Arbitration Act, 1940 (hereinafter referred to as "Act, 1940") for appointment of an arbitrator to adjudicate upon the disputes between the petitioner and the respondent-Cooperative Society.

(2.) MR . B.K. Dewan, learned counsel for petitioner-contractor stated that petitioner-contractor was awarded a contract by respondent no. 1 for carrying out balance construction work of 70 flats at Plot No. 33, Parparganj, Delhi on labour rate basis vide letter dated 26th April, 1990. He further stated that the tender floated by respondent-Cooperative Society contained an arbitration clause, namely, Clause 37 and the said Clause would apply in view of the acceptance letter dated 26th April, 1990 even though no formal agreement had been executed between the parties.

(3.) MR . Dewan emphasised that even though a formal contract had not been executed between the parties, petitioner-contractor would be entitled in law to rely upon Clause 37 of the tender document inasmuch as respondent- Cooperative Society had accepted petitioner-contractor's offer vide letter dated 26th April, 1990 and petitioner-contractor had implemented part of the contract. Mr. Dewan also placed reliance upon Clause 15 of Special Conditions (hereinafter referred to as "SC") of the tender document forming part of the Schedule of Quantities wherein it had been stated that irrespective of the fact whether a formal contract had been executed or not, written acceptance by respondent-Cooperative Society shall constitute a binding agreement between the parties. Accordingly, he submitted that the present petition needs to be allowed and disputes between the parties needs to be referred to an arbitrator.