PARAMOUNT POLLUTION CONTROL LTD Vs. HINDUSTAN COPPER LTD

JUDGEMENT

(1.) HEARD Mr. G. G. Sharma and Shri Abhay Bhandari, learned counsel for the parties.

(2.) M/s. Paramount Pollution Control Ltd. , the applicant herein, filed the above application u/s. 11 of the Arbitration and Conciliation Act, 1996. The applicant Company was awarded a contract for a sum of Rs. 8,26,81,000/ -. After observing the formalities, the work was entrusted to the applicant Company and the applicant has completed the work on time and in accordance with the prescribed parameters. Certain differences have cropped up with regard to the above work. It is the case of the applicant Company herein that they have literally abided by the terms and conditions of the contract, whereas, the respondent company finds faults with the applicant company on one pretext or the other, and a huge amount of Rs. 1,21,43,832/-remains outstanding against the respondent Company.

(3.) IN this context, it is useful to refer to the reply sent by the respondent company (Annex. R- 1), which reads as under: "registered Post with A. D. WITHOUT PREJUDICE 26. 5. 2000 No. HCL/kcc/pcc/4965 M/s. Paramount Pollution Control Ltd. Paramount Complex, Gotri Road, Race Course, BARODA- 390007 (Gujarat ). Attn: Mr. P. D. Patel, Director. Sub: Settlement of the final dues/invocation of arbitration. Dear Sir, This has reference to your letter Number PPCL/ap/324/99/5349 dated 1. 11. 99 on the above subject. IN this regard, I have been directed to inform you that since you have submitted your reference for arbitration vide your above letter to ED, KCC, he is unable to appoint an Arbitrator as per your request. IN case you have any dispute (s) with HCL/kcc arising out of contract dated, 22. 6. 94, you may submit your reference for arbitration only to the CMD, Hindustan Copper Ltd. , Tamara Bhawan, 1, Ashutosh Chowdhury Avenu, Calcutta- 19, who is the appointed Arbitrator in terms of Arbitration agreement per clause No. 3. 67 of the contract. under reference. For appointment of Arbitrator, a party is to approach the appropriate forum; and in this case since our CMO is the appointed Arbitrator as selected by the parties, in the above arbitration agreement, you are required to invoke the above clause and submit your reference for arbitration to him only, and not to ED, KCC. Trust this clarifies the legal position. Yours faithfully, (D. K. Mehta) AGM (Projects) CC- GM (Proj) HO/ Cal. DGM (W) TA to ED Manager (Law)".