SUBODH SHARMA Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a petition under Section 111 of the Arbitration and Conciliation Act, 1996 for appointment of Arbitrators to resolve the dispute arising out of Contract Agreement No. 1/90 dated 18.9.90.

(2.) Heard learned counsel for the petitioner Shri A.K. Bhattacharyya and Shri P.K. Tiwari on behalf of the respondents.

(3.) The facts which do not admit of any dispute between the parties are that an agreement was entered into on May 18, 1990 between the petitioner and the respondents (Railway Department) under which the petitioner was to execute the work of design supply, erection, testing and commissioning of 0.433/ 11 KV, 2.5 MVA Sub-station etc. at New Bongaigaon. The petitioner executed: the work entrusted to them under the contract. According to the petitioner the agreement contained certain special conditions of contract in respect of price variation formula. The petitioner is said to have moved the authorities for payment on account of price variation formula in August, 1991. It is further submitted (that getting no response from the respondents, they again approached the authorities, namely, the Chief Electrical Engineer, N.F. Railway, Maligaon giving details of the price variation calculation through representation dated 25.1.94. This representation too brought no result, hence they again represented on 2.11.94, upon which the District Electrical Engineer (W), N.F. Railway, New Bongaigaon forwarded the representation to the Chief Electrical Engineer, N.F. Railway, Maligaon for his consideration. The District Electrical Engineer (W), N.F. Railway, New Bongaigaon again wrote letter to the Chief Electrical Engineer for his consideration of price variation calculation of the petitioner, but there was no response. Ultimately the petitioner served a pleader's notice on 5.7.96 requiring the respondents to appoint Arbitrators to settle the dispute. But neither the payment has been made nor the respondents appointed arbitrators in pursuance of the arbitration clause of conditions of contract.