CHIEF EXECUTIVE OFFICER Vs. SOCIAL PROMOTORS

JUDGEMENT

(1.) THIS is a petition under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (for short 'Act') for appointment of an Arbitrator. It has been stated that Baddi Barotiwala Nalagarh Development Authority (for short BBNDA) invited expression of interest to tap the revenue potential on account of advertisement revenues and to keep the area free from un-authorised advertisements, bills/posters, banners etc. The expression of interest was published in daily newspaper 'Hindustan Times' on 28.8.2007. The respondent and others responded to the expression of interest. On 24.9.2007 the respondent being the highest bidder was selected and accordingly was awarded the contract. The agreement between BBNDA and respondent was signed on 18.3.2008 for putting advertisements on the locations specified in the agreement. The agreement was valid w.e.f.18.6.2008 to 17.6.2011.

(2.) THE respondent was to pay license fee to petitioner as specified in the agreement. THE respondent had deposited with BBNDA some amounts total amounting to Rs.11,06,445/-. THEre is a provision in Clause 16 of the agreement that if license fee installment is not deposited by due date, a penalty of 1% on the due license fee for delay of every week shall be imposed on the firm.

(3.) THE respondent vide letter dated 1.9.2011 was requested to pay Rs. 16,06,245/-. On 3.12.2011 it was notified to the respondent that the case may be referred to mutually appointed arbitrator as per Clause 14 of the agreement, failing which the respondent would be bound to the arbitrator appointed by BBNDA. THE respondent has not responded to the letter dated 3.12.2011, hence petition under Section 11 (6) of the Act for appointment of an Arbitrator.