NORTHERN COALFIELDS LTD Vs. SALUJA CONSTRUCTION CO ARBITRATION

JUDGEMENT

(1.) This appeal filed under Section 37 of the Arbitration and Conciliation Act, 1940 (Arbitration Act) is directed against the order, dated 27. 09. 2009, passed in Civil Suit No. 29-B/2002, passed by 1st Additional Judge to the Court of 1st Upper District Judge, Sidhi.

(2.) Briefly stated, the facts are that the respondent was awarded contract for construction of 100 "B Type Quarters" at Bina and an agreement in this regard was entered into between the parties on 11. 01. 1986. The schedule date for completion of work was 11-3-1987. On 01. 10. 1992 the Chief Engineer ordered to stop payment and directed that all payments to be kept in abeyance. The respondent issued a notice under Clause 9 of the Agreement (Terms and Conditions) to appoint an arbitrator in respect of Bina Project only by showing the outstanding amount as Rs. 2,23,215/-. This amount was shown as outstanding since 13. 03. 1988. The notice was issued on 08. 1 199 The appellant by reply, dated 15. 1 1992 rejected the claim of the respondent. The respondent raised a bill of Rs. 2,35,215/-and then filed an application under Section 20 of the Arbitration Act for filing of agreement and appointment of arbitrator. The stand of appellant is that the said application was filed by the respondent only for the work relating to Bina Project.

(3.) The appellant contends that the learned District Judge by order, dated 06. 05. 1996 appointed an arbitrator. On 06. 12. 1996, the District Judge, Sidhi wrote a letter to arbitrator to enter into a reference for deciding the dispute between the parties in respect of construction of 100 numbers of "B Type Quarters" at Bina Project and pass an order within a period of six months. The claim of respondent before the arbitrator was in relation to sister concerned M/s. Navtej Builders also. By reply dated 14. 04. 1997, the appellant denied the claim. The sole arbitrator by letter dated 16. 06. 1997 asked the parties to appear on 4th & 5th July so that dispute between the respondent and NCL relating to construction of quarters at Bina Project can be decided.