STATE OF BIHAR Vs. TEXMACO LIMITED

JUDGEMENT

(1.) Heard learned Counsel for the petitioner (State of Bihar) and learned Counsel For the respondent (Texmaco Limited).

(2.) This writ petition has been filed for quashing order dated 20.04.2000 (annexure-9) passed by the learned designated Judge of this Court in Request Case No. 16 of 1999 under the provision of Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act' for the sake of brevity) appointing Sri Md. Anisur Rahman, Chief Engineer, Water Resources Department, Darbhanga as an arbitrator on behalf of the State of Bihar (petitioner) and Mr. Justice S.B. Sanyal, a retired Judge of this Court as Arbitrator on behalf of Texmaco Limited (respondent) and also for quashing order dated 30.01.2001 (annexure-11) passed by the said court in MJC No. 2131 of 2000 modifying the above mentioned order to the extent that the said order be treated to have been reiterated as a fresh order of appointment of arbitrators as on 30.1.2001 and further for quashing order dated 02.01.2002 (annexure-15) passed by the said Court in Request Case No. 16 of 2001 by which Mr. Justice Uday Sinha, a retired Judge of the Patna High Court was appointed as a 3rd arbitrator under the provision of Section 11(a)(b) of the Act.

(3.) Learned Counsel for the petitioner submitted that tender notice was issued on 05.11.1984 (annexure-1) by the office of the Superintending Engineer, North Koel Barrage Circle, Mohammadganj (Palamau), Bihar, inviting tenders for the design, manufacture, supply and installation of all necessary equipments for the gates of North Koel Barrage and its right Head Regulator at Mohammadganj coupled with all the necessary hoisting accessories and arrangements, tools and equipments for regulating gates etc. in continuation with earlier notices issued in that regard. It is also stated that in compliance of the aforesaid tender notice, the respondent (Texmaco Limited) sent its offer on 20.01.1985 (annexure-2) whereafter the petitioner (authorities of the State of Bihar) conditionally accepted the said offer on 21.07.1987 (annexure-3), whereafter an agreement/concluded contract was executed by the respondent and the Executive Engineer, North Koel Division, Mohammadganj, on behalf of the petitioner on 01.02.1988 (annexure-4). Learned Counsel for the petitioner further averred that subsequently the respondent sent a letter to the petitioner dated 28.02.1999 (annexure-5) claiming that the work has been completed, but the payment of bills was being delayed due to which interest, renewal charges, commissions and other expenses have accrued and a total amount of Rs. 100.67 lacs have become due and payable inspite of repeated requests and demands, hence there was a serious dispute and difference between the two parties and thus invoking the arbitration clause in the agreement, the respondent appointed Mr. S.B. Sanyal, a retired Judge of the Hon'ble Patna High Court as its arbitrator calling upon the petitioner to appoint its arbitrator immediately.