ARCHITECTURAL ALUMINIUM SYSTEMS Vs. GITANJALI GEMS LIMITED

JUDGEMENT

(1.) THIS application is filed under Section 11(5) and (6) of the Arbitration and Conciliation Act, 1996 (for short 'the Act') seeking appointment of an arbitrator for resolution of the disputes arising out of the agreement dated 09.08.2008 executed between the petitioner and the respondent company.

(2.) IT is stated that the respondent had awarded a contract to the applicant for Structural Glazing and ACP Cladding work for SDF-1 Building at Rajiv Gems Park, Hyderabad and accordingly a contract dated 09.08.2008 was entered into with the petitioner. The total value of the work initially agreed was Rs. 64,64,590/-. While the work was in progress, the respondent by letter dated 04.02.2009 requested the applicant to stop all the works for the time being stating that due to the current economy slow down they were unable to sustain their investment plans for the project. The applicant was also requested to submit his final bill to meet the final settlement for the executed works. Accordingly, the applicant submitted the bill dated 06.04.2009 for Rs. 31,38,206/- for payment. Alleging that the respondent failed to pay the said amount the applicant got issued a legal notice dated 05.02.2010 calling upon the respondent to pay the amount due within a period of one week failing which appropriate proceedings would be initiated for recovery of the amount. IT was also stated in the said notice that as per the contract dated 09.08.2008 it was agreed to resolve the dispute under the Arbitration and Reconciliation Act, 1996 and that invoking the said arbitration clause, the applicant had appointed Justice Sri S. Dasaratharama Reddy, a retired Judge of this Court, as Arbitrator to resolve the dispute arising under the contract.

(3.) I have heard Sri Kishore Rai, learned counsel for the applicant as well as Sri Vedula Srinivas, learned counsel for the respondent and perused the material available on record.