CHENNA REDDY Y Vs. UNION OF INDIA

JUDGEMENT

(1.) The applicant is a Railway Contractor. He filed his Arbitration Application under Section 11 (6) of the Arbitration and Conciliation Act, 1996, for appointment of an Arbitrator for adjudication of the claims/ disputes, which arose between him and the respondents.

(2.) The applicant was awarded a contract under an agreement dated 27-10-1998. The nature of the work is 'Guntakal-Wadi Section, replacement of bridge timbers with new steel channel sleepers for Br.No. 1017 at KM 536/4-537/5 (36 x 19.20 M "G"), between Mantralayam Road - Hanumapur (1092 sleepers of 2.6m length)'. The value of the work is Rs. 58,26,960.00. The work was to be completed within six months. As the respondents did not supply the material required for executing the work, the applicant could not complete the work in time, and the currency of the contract was extended. The applicant completed the work on 26-9-2000. Though the applicant received some payments, he raised certain claims, and in that regard a lot of correspondence took place between the applicant and the respondents. The applicant though got issued a legal notice dated 18-12-2001 requesting the respondents to appoint an Arbitrator for adjudication of the claims/ disputes, no action was taken thereon. Therefore, he filed the present Arbitration Application.

(3.) On behalf of the respondents, the Senior Divisional Engineer, has filed counter denying the averments made by the applicant. It is stated that the applicant completed the work on 26-9-2000 and the final bill submitted by him was also paid. The applicant also gave a No-Claim Certificate, as required under Clause 43(2) of the General Conditions of Contract, stating that he has no claims against the respondents-Railways. Further, the No- Claim Certificate given by the applicant in terms of Clause 43(2) of the General Conditions of Contract, falls under "excepted matters", which are excluded from the scope of arbitration as per Clause 63 of the General Conditions of Contract, and therefore, the applicant cannot be allowed to raise any claims. It is, however, stated that even assuming that there are disputes between the parties, the respondents-Railways should be given the option of appointing an Arbitrator.