Y CHINNA REDDY Vs. UNION OF INDIA

JUDGEMENT

(1.) The respondents / Southern Railway placed a tender on the petitioner for Gauge Conversion Suburban Chennai Beach Tambaram Chengalpattu Sec. Proposed construction of new FOB at Vandalur and additional Stairway facilities at Singaperumal Koil, dismantling of FOB at Vandalur, Guduvancheri, and provision of new platform shelters at various stations from Perungalathur to Paranur and alteration to the existing platform shelters between Tambaram and Chengalpattu (balance works) (risk and cost), vide Letter of Acceptance dated 20.01.2006, which was followed up by an agreement dated 29.03.2006 for the contractual value of Rs.1,68,24,588.00. Disputes have arisen inter se the parties arising from that contract and the petitioner invoked the arbitration clause vide letter dated 28.07.2010.

(2.) An Arbitral Tribunal was constituted by the first respondent vide letter dated 02.11.2010 consisting of three serving officers. Pleadings were exchanged, but other than that no effective steps were taken. The Arbitral Tribunal was re-constituted on 25.06.2012 on account of superannuation of the Presiding Arbitrator.

(3.) The position did not improve even before the second Tribunal and nothing happened till the Tribunal was again re-constituted for the second time on 27.11.2013 on account of retiring from service and transfer of two of the Arbitrators respectively. This third Tribunal went even further and neglected to hold even a single sitting, compelling the petitioner to invoke the jurisdiction of this Court under Sections 14 and 15 read with 11 of the Arbitration and Conciliation Act, 1996.