MLGC-ECC-VIPL (JOINT VENTURE) Vs. HOUSEFED, PUNJAB, PUNJAB STATE FEDERATION OF COOPERATIVE HOUSE BUILDING SOCIETIES LTD AND ANOTHER

JUDGEMENT

(1.) This is a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (in short the Act) for the appointment of an arbitrator.

(2.) The respondents issued a tender for the construction of 96 flats. The same was awarded to the petitioners. The parties entered into a contract. The terms and conditions of the Notice Inviting Tender (NIT) and the General Conditions of Contract were incorporated in the contract. Clause 25A of the General Conditions of Contract contains an arbitration clause which in so far as it is relevant to this petition reads as under:-

(3.) The Government of India, National Institution for Transforming India (NITI Aayog) issued an office memorandum dated 05.09.2016. Clause 2.1 thereof states that in contracts where the process of arbitration is initiated under the pre-amended Act, the PSUs/Departments may seek the consent of the contractors/concessionaires to transfer pending cases under the amended Act wherever possible as this was expected to make the arbitration process more cost effective and help in settling the disputes in a timely manner. The petitioners by a letter dated 209.2016 requested the respondents for transferring their pending cases from the purview of the un-amended Act to the purview of the amended Act. The respondents by their response dated 27.09.2016 did not accept the petitioners' contention.