BHULLAR CONSTRUCTION COMPANY Vs. PUNJAB SMALL INDUSTRIES

JUDGEMENT

(1.) This petition has been filed under Section 11 of the Arbitration and Conciliation Act 1996, inter-alia praying for appointment of an Arbitrator by the Court as the respondent inspite of the Arbitration Clause in the contract and invokation of the said clause, has not supplied the vacancy of the Arbitrator.

(2.) Learned counsel appearing for the petitioner has contended that following was the Arbitration Clause 24(A) in the agreement:- If any question, difference or objection what so ever shall arise in any way connected with or arising out of this instrument or the meaning or operation of any part thereof or the rights, duties or liabilities of either party Arbitration Case No.41 of 2005 [2]

(3.) then save in so far as the decision of any such matter is hereinbefore provided for an has been so decided, every such matter including whether it has been finally decided accordingly, or whether the contract should be terminated or has been rightly terminated and as regards the right and obligations of the parties as the result of such termination shall be referred for arbitration to Chief Engineer Punjab Small Industries & Export Corporation Ltd., Chandigarh acting as such of the time of reference within 180 days or 6 months from the payment of final bill or written notice issued to the contractor that his bills is ready for payment and his decision shall be final and binding and where the matter involves a claim for or the payment or recovery or deduction of money only the amount, if any, awarded in such arbitration shall be recoverable in respect of the matter so referred. If matter is not referred to arbitration within the specified period all the rights and claims under the contract shall be deemed to have been forfeited and absolutely barred.