NIRMAL SINGH Vs. G.M. NORTHERN RAILWAY

JUDGEMENT

(1.) CONSEQUENT upon the desire expressed by the Respondents, and in consideration of the claim of the petitioner in furtherance thereof, a contract was executed between the parties at an agreed rate of Rs. 4,51,558/- For some reason, the Respondents desired to rescind the contract. Accordingly, a notice dated 26.5.2003 was issued depicting the intention of the Respondents of rescinding the contract. Thereafter a notice was also issued by the Respondents to the petitioner for forfeiture of the earnest amount.

(2.) FOR the same work, another tender was floated on 25.7.2003. The tender amount at this juncture was Rs. 5,05,020/-. After considering the tender claim of those who responded to the notice inviting tenders, it was found that the petitioner was the lowest tenderer. The petitioner tenders was accordingly accepted on 30.9.2003. An agreement was accordingly executed between the parties on 29.1.2004.

(3.) IT is not a matter of dispute that the agreement dated 29.1.2004 incorporates an arbitration clause whereby a dispute arising between the parties out of the agreement executed between them, was referable to an arbitrator. When the amount of Rs. 54,262/- was sought to be deducted on 12.12.2004 from the amount which became due to the petitioner on the basis of the agreement dated 29.1.2004, the petitioner issued a legal notice dated 14.10.2004 protesting against the aforesaid action of the Respondents. Since no heed was paid to the legal notice dated 14.10.2004, the petitioner issued a further legal notice dated. In the instant legal notice dated 23.12.2004, the petitioner also claimed appointment of an arbitrator. Since no arbitrator was appointed by the Respondents in furtherance of the aforesaid legal notice dated 23.12.2004, the petitioner has approached this Court by filing the present petition under section 11 of the Arbitration and Conciliation Act, 1996.