UNION OF INDIA Vs. CHANDRA ENGINEERS

JUDGEMENT

(1.) This revision petition has been filed by the Union of india, Ministry of Defence against the order of the District Judge dated 23.2.1999 whereby the application filed by the repondent under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of Arbitrator had been allowed.

(2.) The petitioner is aggrieved against such appointment of Arbitrator. An agreement was entered into between the parties for the contract in question and under Clause 7 of such agreement, the dispute between the parties was referable to the arbitration. The case of the respondent is that despite the work having been done within time, the payment was made in time.lt was also disputed that the respondent had not done correct measurement. Demand was issued to the appellant with request to appoint the Arbitrator. The Union of india had not appointed any Arbitrator and a dispute arose for the payment of Rs. 66,41,500/-. Notice was issued on 31.7.1997, but no action was taken, therefore, application was moved to appoint an independent Arbitrator.

(3.) Per contra, the appellant had stated that full and final payment had been made on 11.6.1994 which was received without any objection. It was stated as per the condition No.63 of the agreement after the receipt of the full and final settlement, no right was left with the parties to raise any dispute and as such no arbitrator could have been appointed. It was also averred that the demand was given on 13.9.1994 and as such the application was beyond limitation. As per the appellant the final bill was made on 28.10 1993 and payment was made on 11 6.1994 and as such receipt of any dispute after the period of three years was beyond limitation.