S K AGARWALA Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an application under S. 11 of the Arbitration and Conciliation Act, 1996, with a prayer for appointment of Arbitrator.

(2.) Heard Shri R. Hussain learned counsel for the petitioner and Shri B. K. Sarma learned counsel appearing for the Railways.

(3.) According to the petitioner the respondent Railways accepted the tender of the petitioner for construction of sub structure of major bridges and road under bridge near Dudhoni. The approximate value of the work was Rs. 1,15,45,600/-. The work was to be completed in 14 months. The acceptance of the tender of the petitioner was conveyed through letter dated 6-2-1996. Agreement between the parties was executed on March 20, 1996. A copy of the agreement has also been annexed as Annexure-II to the petitioner. The agreement was also to be governed by general conditions of contract and specifications of the Railways which contains an arbitration clause as well for settlement of disputes. According to the petitioner on acceptance of the tender, he started mobilisation of resources to start and complete the work within the stipulated time. For the said purpose he purchased machinery, materials, mobilised men and also purchased TMV trucks. Since the site was not being made available to the petitioner, they had been writing to the respondents as the time for execution of the contract was passing. The petitioner had also been making preparations for starting the work including by constructing labour sheds, store rooms etc. Extension was also granted by the respondents up to 31-5-1998 by letter dated 20-5-1997.