M/S. HINDUSTHAN BUILDERS Vs. IRCON INTERNATIONAL LIMITED

JUDGEMENT

(1.) This application under Sec. 11(6) of the Arbitration and Conciliation Act has been filed by the applicant for appointment of arbitrator to resolve the dispute between the parties.

(2.) The case of the applicant is that in response to the e-tender, applicant had given the offer and letter of acceptance dtd. 29/1/2016 was issued to the applicant by the respondent for construction of 750m approx. concrete road as per technical and MORTH Specifications. The formal agreement was executed on 14/3/2016. The work was to be completed within 9 months, but there was some delay in completion. The extension of time was granted by the respondent by their letter dtd. 5/6/2017. Ultimately, the work was completed on 15/12/2017. The allegation of the applicant is that the work was delayed due to the default on the part of the respondent. According to the applicant the payment was also delayed and was made only after 5/3/2019 that too on submission of No Claim Certificate which was submitted under economic duress. Applicant had issued the letter dtd. 2/9/2019 for appointment of arbitrator. Applicant thereafter had sent the notice for conciliation dtd. 19/6/2020 which was replied by the respondent stating that the full payment was made in March, 2019 and No Claim Certificate was submitted by the applicant in January, 2019, hence, the contract was discharged, therefore, the prayer for conciliation could not be accepted. The applicant thereafter had sent the communication dtd. 1/10/2020 for appointment of arbitrator which was replied by the respondent on 27/10/2020 taking the stand that after acceptance of the final bill of payment on 5/3/2019 and on submission of No Claim Certificate the contract stood discharged, therefore, the applicant could not invoke the mutual settlement, conciliation or arbitration clause.

(3.) The submission of the learned Counsel for the applicant is that the No Claim Certificate was issued by the applicant under economic duress as the payment was delayed by the respondent, therefore, on the basis of such No Claim Certificate, the remedy of arbitration cannot be denied.