M/S. SHANTI ENTERPRISES Vs. UNION OF INDIA

JUDGEMENT

(1.) The above Arbitration Application is filed by the Applicant - M/s. Shanti Enterprises against the Respondent - Union of India under Section 11 of the Arbitration and Conciliation Act, 1996 (the Act) for appointment of an Arbitrator to adjudicate the disputes between the parties arising out of the Contract Agreement No. C.A. No. CENM M-13 of 2011-12 'For Addition/Alteration and Improvement to Building P/151 (Junior Sailors Bock 320) at INS HAMLA.

(2.) The Applicant is a partnership concern registered under the provisions of the Indian Partnership Act, 1932 and is having its office at the address mentioned in the cause title. The Applicant is engaged in the business of construction activities. The Respondent is the Union of India represented through the Chief Engineer (Navy) Mumbai.

(3.) Tenders were invited by the Respondent pertaining to Addition/Alteration and Improvement to Building P/151 (Junior Sailors Block 320) at INS HAMLA (hereinafter referred to as 'the works'). Pursuant to the said tenders, the Applicant submitted its bid to the Respondent and was declared as the successful bidder. Thereafter, a letter of acceptance dated 20th October, 2011 was issued to the Applicant by the Respondent informing the Applicant that their offer of the said work has been accepted. The total costs of works awarded to the Applicant under the tender is Rs. 53,65,623/-. Pursuant thereto, a work order bearing No. 87257/46/E8C dated 20th October, 2011 was issued by the Respondent upon the Applicant, wherein the date of commencement of work was mentioned as 9th November, 2011 and the date of completion as 9th November, 2012. Thereafter, a formal contract being Contract Agreement No. C.A. No. CENM M-13 of 2011-12 (hereinafter referred to as 'the contract') was entered into between the Applicant and the Respondent. The said contract is also governed by General Conditions of the Contract (GCC). Condition 70 pertains to arbitration agreement. The said Condition 70 is reproduced hereunder :