CIVON CONSTRUCTION PVT. LTD. Vs. IRCON INTERNATIONAL LIMITED

JUDGEMENT

(1.) This application under Sec. 11(6) of the Arbitration and Conciliation Act, 1996 has been made by the applicant for appointment of sole arbitrator to resolve the dispute.

(2.) Undisputedly, the Letter of Acceptance dtd. 3/5/2016 was issued by the respondent in favour of the applicant accepting the tender and awarding the contract for the work specified in Clause 2 of the LOA. The dispute had arisen between the parties, therefore, in terms of general conditions of contract, applicant had exhausted the remedy of settlement and conciliation. The relevant clause relating to arbitration is as under:

(3.) In the present case, the value of claim is stated to be more than Rs.2.00 Crores, therefore, Clause 73.4.a(ii) is relevant. The above clause empowers the employer to sent panel of more than 3 names to the Contractor and gives option to the Contractor to suggest to the Chairman and Managing Director at least 2 names out of the panel and gives power to the Chairman and Managing Director to appoint at least one out of them as Contractor 's Nominee and to appoint the balance number of arbitrators either from the panel or from outside the pane. It further provides that one of the arbitrator will be from the Accounts Department. The arbitral panel is to consist of a panel of 3 Officers of the respondent, therefore, in terms of Sec. 12(5) of the Act, the said panel is not eligible to arbitrate the matter. There is nothing on record to show that the parties had waived of the applicability of Sec. 12(5) of the Act by any agreement in writing.