BHARTIYA CONSTRUCTION COMPANY Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) This petition under Section 8 and Section 20(4) of the Arbitration Act, 1940 (for short "the Act") is for appointment of an Arbitrator by the Court.

(2.) Petitioner's tender for certain work out of the work of "construction of houses at Sarita Vihar, Sector 1, Pocket A Group IV" was accepted vide letter dated 18.9.1990 andAgreementNo.7/EE/SED-4/DDA/90-91wasexecuted between the parties. The contract is governed by the General Conditions of the Contract Clause 25 of which provides for resolving the disputes arising out of the contract by arbitration. The Chief Engineer of DDA is the Designated Authority to appoint the Arbitrator. The work was to be completed within 12 months, i.e., by 27.9.1991, but was actually completed on 7.4.1994. Due to delay various disputes arose including claims for increase in rates of labour and material. The Arbitrator was not appointed in spite of contractor's notice and he had to file a petition under Section 20 of the Act being Suit No. 1885-A/95 but in the meantime, the respondent appointed one Shri Suresh Mehta as Arbitrator. The said Arbitrator entered upon the reference but by his letter dated 12.6.1997, he resigned as Arbitrator. The petitioner again approached the respondent by means of letter dated 19.6.1997 for appointment of Arbitrator and also suggested names of some persons and desired that an independent technical hand be appointed as an Arbitrator. The notice sent on 19.6.1997 was served on 22.6.1997. Getting no response the petitioner has filed this petition on 28.7.1997 for appointment of the Arbitrator by Court taking the plea that the respondents having not appointed the Arbitrator within 15 days, they have lost their right to appoint the Arbitrator.

(3.) The respondents in reply have pleaded that the Arbitrator had been appointed by the Chief Engineer, DDA who is the Designated Authority by means of letter dated 22.7.1997, (i.e., before the present petition was filed on 28.7.1997) and the Arbitrator appointed is Superintending Engineer (Arbitration) so designated to deal with arbitration cases only.