NAPC Vs. PROJECT DIRECTOR

JUDGEMENT

(1.) The applicant in this Arbitration Request is stated to be a Company engaged in various business operations including open cast mining, land development, airfield construction, dam, reservoir and canal building, along with its core strengths of earth moving and road construction works - all over India. They say that they had entered into Annexure-A2 Agreement with the respondent - Kerala State Transport Project (hereinafter referred to as "the KSTP" for short) and that several works were completed by them satisfactorily over a period of time.

(2.) The applicant submits that several disputes arose during the time when the agreement was in force; and that, as per the dispute resolution mechanism agreed between the parties in the said agreement, a Dispute Board had been validly constituted, which entertained the said disputes on its merits and found resolution at various times. They say that, however, when it came to the disputes with which this Request is concerned with, the respondent abruptly and without cause, refused to accept the Chairman of the Dispute Board and contested his authority; and thus that said Board made an order without the junction of its member nominated by the respondents. They say that since they find this order to be partly unacceptable on its merits, they issued a "Notice of Dissatisfaction", as is required under Clause 20.4 of Annexure-A2 Agreement, which is the precursor step for appointment of Arbitrators as per the said agreement.

(3.) The applicant submits that they thus requested the respondent to appoint an Arbitrator from their side, so as to form a Panel, along with the Arbitrator named by them through Annexure-A19; but that respondent refused to accede to this, consequently constraining them to approach this Court under the provisions of Section 11 (4) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act" for short), seeking that an Arbitrator be appointed on behalf of the respondent, so as to pave way for the constitution of a three member Arbitral Tribunal, which they assert is mandated under Annexure-A2 Agreement.