COBRA CIPL Vs. CHIEF PROJECT MANAGER

JUDGEMENT

(1.) In this application filed under Section 11(6) of the Arbitration and Concilation Act, 1996, the applicant has prayed for appointment of arbitrator for adjudication of the dispute between the parties which as per the applicant has arisen within the territorial jurisdiction of this bench. The interesting conundrum in this case is based on Clause 1.2.54 (k) of the Agreement entered into between the parties. Since, the said clause talks about ' venue' and makes it clear that venue for an arbitrator shall be the place from which the letter of acceptance of tender is issued (Allahabad) or such other place as the purchaser (Railways) at his discretion may determine, the stand of respondents is that this Court does not have territorial jurisdiction to entertain present application.

(2.) Learned counsel for the applicant submits that tender was floated in February, 2013. The applicants original offer dated 30.4.2013 was followed by negotiated offer dated 13.11.2013. On 15.11.22014, Annexure A-4, the 'letter of acceptance' was issued by the respondent from Allahabad. The document dated 30.4.2014 shows that contract was entered into between the parties at Jabalpur. The work was required to be performed at Jabalpur. The CBI conducted a surprise check at the site which falls within the jurisdiction of this Court where allegedly certain discrepancies were found by the CBI. On 17.12.2016 Annexure A-7, a joint meeting was convened between applicant and respondent at Jabalpur. It was agreed that applicant will recast the poles and requested for release of pending bills by letter dated 4.3.2017 Annexure 9. the respondent agreed to release the payments. They also agreed that work shall be completed by 31.12.2017.

(3.) Shri Verma, learned counsel for the applicant submits that entire cause of action has arisen within the territorial jurisdiction of this bench except the event of issuance of 'letter of acceptance'. All the aforesaid events have taken place within the territory of this bench followed by termination notice dated 6.6.2017 Annexure A-10 issued from Jabalpur and followed by another termination notice of 48 hours issued from Jabalpur on 27.6.2017. The contract was terminated by order dated 17.9.2017 Annexure A-14 issued from Jabalpur. Thus, almost entire cause of action has arisen within the territory of this Bench.