ENGINEERING SYSTEMS LIMITED Vs. M P ELECTRICITY BOARD

JUDGEMENT

(1.) THIS is an application under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (hereinafter to be referred to as the 'act') for appointment of arbitrator.

(2.) IT is not in dispute that the applicant was awarded contract by the non-applicant for "augmentation of coal handling plant" at Satpura, Thermal Power Station, Sarni by order dated 31-3-1984. The civil work was excluded from this contract. The applicant submitted the running bills. The non-applicant paid an amount of Rs. 2,82,644/- to the applicant on 17-8-1998. There is an arbitration clause in the contract. According to the arbitration agreement any dispute between the parties "in relation to or in connection with the contract" is to be referred to the two arbitrators, one to be nominated by the applicant and the other by the non-applicant. In case of disagreement between the arbitrators they would appoint an umpire. The applicant by letter dated 12-2-1999 called upon the non-applicant to agree for appointment of arbitrators as per agreement.

(3.) THE applicant's case is that the amount of Rs. 26,52,025/- is recoverable from the non-applicant and that is not being paid by the non-applicant. Therefore, there is a "dispute" between the parties and it should be decided by the arbitrators as per arbitration agreement.