POST OFFICE SHOGHI Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) THIS is a petition under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (for short 'Act ') for appointment of Arbitrator. It has been stated that the parties had entered into an agreement under which the petitioner had been awarded the contract for the works relating to installation of road devices on NH 22 - Location Shoghi Bazar by the respondents. The contract between the parties also contained an arbitration agreement embodied in Clause 25 thereof requiring all disputes or differences arising out of the contract to be adjudicated upon by a sole Arbitrator to be appointed by the Engineer -in -Chief/Chief Engineer, HPPWD. It has been stated that no Arbitrator has been appointed till date.

(2.) THE work was awarded to the petitioner vide letter dated 10.5.2007 for a total cost of Rs. 2,02,215 / - with a time limit of 2 months for its completion. The petitioner had arranged the materials required for the work, however, despite the requests no instruction were given to the petitioner to start and execute the work as a result of which the aggregate and sand stacked in the length of the reach where the work was to be executed, were used by the PWD officials from the site though the cement which had been stacked in a store had to be utilized for other works.

(3.) THE payment of the above amounts has not been made to the petitioner despite requests, thus a dispute has arisen between the parties. A letter dated 15.11.2010 was also written to the Chief Engineer (NH) to appoint an Arbitrator. It has been submitted that earlier petitioner filed arbitration case No. 14 of 2011 for appointment of Arbitrator but that petition was disposed of on 20.5.2011 with observation that since the authorities named in the Arbitration Clause have not been approached, for appointing the Arbitrator, the petition is not competent. Thereafter the petitioner submitted an application dated 22.6.2011 to Engineer -in -Chief for appointment of Arbitrator in terms of Clause 25 of the agreement but despite that Arbitrator has not been appointed.