ASCON CONTRACTORS PVT. LTD. Vs. STATE

JUDGEMENT

(1.) A construction contract was allotted in favour of the petitioner. An agreement came to be executed subsequently being Agreement No. AG-43 of 01/2006. Subsequently, a supplementary agreement dated 13th of September, 2007 is also stated to have been executed. The petitioner states that the entire work was completed to the satisfaction of the department, which however, did not take over the possession of the executed work. It is stated that even when the work stood completed in 2007 final bill was not prepared till August, 2009. Finally it is stated that an amount of Rs. 19 lac approximately was deducted from the final bill illegally. It is against this withholding of the amount along with other issues, which gave cause of action to the petitioner to seek reference of the disputes to the arbitrator in terms of the arbitration clause. This was done by virtue of a registered letter dated 7-4-2010, invoking clause 27 of the tender document for the resolution of the disputes between the parties.

(2.) Clause 27.1 containing the arbitration clause is reproduced hereunder:

(3.) The petitioner has placed on record the receipt issued by the Indian Postal authorities regarding the service of the registered A/D containing the notice, seeking reference of disputes to the arbitrator.