GARG CONSTRUCTION COMPANY Vs. STATE OF HARYANA

JUDGEMENT

(1.) This application under Sec. 11(6) of the Arbitration and Conciliation Act, 1996 (in short the Act) seeking appointment of an arbitrator has been filed by the applicant on 28/4/2017.

(2.) The claim is based on the fact that the applicant entered into an agreement with the respondents on 23/4/2004 for widening and strengthening on Dabwali Kalanwali via Desujodha Road K.M. 0.00 to 35.10 in Sirsa District. The work was to be completed within a period of twelve months, whereas it was completed on 31/5/2007. A dispute arose between the parties on account of the fact that an inquiry by the State Vigilance Bureau was conducted in respect of certain issues and, therefore, payment of the applicant was withheld. The applicant thereafter filed an application seeking appointment of an arbitrator by issuing a legal notice to the respondents on 11/4/2011 (Annexure P-3) pursuant to which the respondents sent a letter dtd. 28/4/2011 (Annexure R-l) asking the applicant to deposit 10% of the claim amount immediately well before the limitation period so that the arbitrator could be appointed. The communication clearly stated that in case the applicant failed to deposit the claim amount well before the limitation period, it would be responsible for the delay. Thereafter, several correspondences took place between the parties and the respondents continued to reiterate their stand on the deposit of 10% of the claim amount which was admittedly not deposited by the applicant. Ultimately, the applicant filed this application under Sec. 11 of the Act before this Court on 28/4/2017.

(3.) The preliminary objection raised by the respondents is that the application filed by the applicant seeking appointment of an arbitrator is barred by limitation on account of delay and laches and, therefore, deserves to be dismissed.