MALU SLEEPER LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Mr: A.L. Somayaji, learned senior counsel appearing on behalf of Mr. Amalraj S. Penikilapatti in support of this petition. Mr. V.G. Suresh Kumar, learned counsel appears for the respondents. The petition is filed for appointment of an Arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996.

(2.) The petitioner entered into an agreement with the respondents for manufacturing and supplying 5,00,000 Pre-stressed Concrete Sleepers. The petitioner manufactured and supplied the sleepers to the respondents and payment was also made, but there was a dispute regarding the escalation in the prices of raw materials required for the manufacture of those sleepers. The petitioners submitted the escalation bills, but they were pending for a long time. That led to arbitration between the parties. An award was passed, but that was set aside by consent and now appointment of an Arbitrator is again sought for, in terms of Clause 2900 of the Indian Railway Standard Conditions of Contract, which are the conditions read into all such agreements. The said clause reads as follows:

(3.) On 15.4.2009, the respondents have proceeded to appoint Mr. Rajendra Prasad, Chief Engineer presently posted at the Integral Coach Factory, Chennai, as the Arbitrator to settle the dispute in question. In view thereof, according to the respondents, they have effected the appointment as required. It is submitted on behalf of the respondents that the dispute in this case is between the petitioner and the Chief Engineer, Southern Railways, whereas, the person appointed as Arbitrator is a Gazetted Railway Officer holding an altogether different position. He has nothing to do with the contract entered into between the parties which is under consideration and being an independent and impartial person, he has been appointed as an arbitrator in this case.