PRAKASH ART STUDIO Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an application under Sec. 11(6) of the Arbitration and Conciliation Act, 1996 (for short, 'the Act of 1996') for appointment of an arbitrator.

(2.) The first applicant is a proprietorship firm and the second applicant is the proprietor of that firm. The opposite parties are the Union of India and the Ministry of Railways and various officials of the North Eastern Railway.

(3.) The applicant entered into a contract with the Senior Divisional Commercial Manager, North Eastern Railway, Izzat Nagar, Bareilly by a registered agreement dtd. 19/2/2016 for a period of three years w.e.f. 19/2/2016. The applicant's case is that under the contract he was authorized to exhibit hoardings and signboards on different areas at the railway station or other locations specified in enclosure 1 to the agreement. The details of those locations where hoardings could be displayed are setforth in paragraph no. 5 of the affidavit. The contract was awarded on a license fee of Rs.50,31,000.00 for the entire period of three years. Should any dispute arise between parties, relating to the license governed by the contract, an arbitration clause is carried in clause 31.1, 31.2 and 31.3 which reads as under: