UNION OF INDIA UOI Vs. PIONEER CONSTRUCTION

JUDGEMENT

(1.) By a memo dated April 7, 1999 the petitioner accepted the tender submitted by the respondent for certain works of renovation at the Central Store Building Survey of India at 15, Wood Street, Calcutta. Clauses 5 and 7 of the letter of acceptance of Tender being relevant herein are quoted below :

(2.) Despite repeated requests and reminders the respondent neither commenced work nor executed the formal agreement in terms of Clause 5 of the said memo of acceptance of tender. Under the proposed contract any dispute between the parties under the contract was to be referred to Arbitration under Clause 25 thereof. The respondent raised disputes and demanded Arbitration. The petitioner accordingly referred the matter to the Sole Arbitrator, Shri A.K. Bhatnagar.

(3.) Before the Arbitrator, the petitioner contended that since agreement was not signed contract was not concluded between the parties and as such there could not have been any dispute which could be referred to Arbitration. The Arbitrator relying on a decision of Delhi High Court, negated the argument of the petitioner and proceeded with the reference on merits. The Arbitrator ultimately published his Award for a sum of Rs. 1,14,566 in favour of the respondent. Hence, this application for setting aside.