HADOTI TELE SIGNAL CONSTRUCTION COMPANY Vs. GENERAL MANAGER

JUDGEMENT

(1.) The applicant has filed this arbitration application under Sec. 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Arbitration Act:) seeking appointment of an Arbitrator.

(2.) It is pleaded in the arbitration application that NIT dtd. 21/11/2014 for the work of cable construction, laying and allied works for NOFN Project in Suwana Block in Bhilwara SSA was issued. The applicant's tender was accepted and work order was issued on 24/3/2015. An agreement was executed by the parties, which contained an arbitration clause in Sec. V of the General (Commercial) Conditions of the Contract in Clause 17.1. The applicant completed the work within the prescribed time, but some extra work was also allotted and completion period was also extended. The applicant completed the extra work, however, the opposite party requested the applicant for executing the works relating to end to end testing. The applicant executed the additional works and raised bill Nos.56 to 65 for Rs.7,57,050.00. The bills submitted were verified and recommended by the JTO for payment but no payment was made, hence, the dispute arose between the parties. The applicant sent notice dtd. 23/6/2020, which was replied, but payment was not made. The applicant thereafter sent a notice on 3/4/2021 for referring the dispute to an Arbitrator.

(3.) The non-applicants have submitted the reply to the arbitration application. It is contended that as per the terms of the Agreement, the work, which could be done, could not exceed 150% of the original contract. The applicant was already paid for the excess works done upto 150% and any work done thereafter could not fall within the ambit of arbitrable dispute. It is also contended that the applicant had given a letter to the nonapplicants that there is no dispute or difference is left and in response to the letter received from the applicant, reply was submitted wherein each fact was duly conveyed to the applicant. It is further contended that bill of Rs.8,38,941.00 has been sanctioned by the non-applicant vide letter dtd. 16/9/2022.