SUGAD SINGH BALANIA Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) HEARD learned counsel for the parties. This is an arbitration application filed under Secs. 10 & 11 of the Arbitration & Conciliation Act, 1996 (for short 'Act of 1996') for appointment of the Arbitral Tribunal for resolution of the dispute between the parties, arising out of the Agreement No. 212/2007 -2008 dt. 20.1.2008 for construction of Patch Repair' work containing arbitration clause No. 23.

(2.) BRIEFLY stated, the facts of the case are that non -applicants issued a Work Order on 10.01.2008 (Annexure/1) for 'Patch Repair work on Roads under PWD Sub -Division, Rajgarh' in respect of which, the agreement was executed between the parties on 20.01.2008 (Annexure/2) containing the Arbitration Clause No. 23 for making the reference to the Empowered Standing Committee. The applicant executed the aforesaid awarded work to the satisfaction of the non -applicants and final bill of the work was prepared but no payment of the same was released. The work was recorded in measurement books and was also checked and audited by the Auditing Staff but inspite of completing all the formalities, no payment was released to the applicant. Later on, work recorded in the measurement books was deleted and the bill was cancelled by the Assistant Engineer which resulted in causing heavy loss to the applicant. Thus the dispute in between the applicant and the non -applicants has arisen in respect of the Agreement No. 212/2007 -2008 dt. 20.01.2008 (Annexure/2). The applicant requested the non -applicants to refer the dispute to the Empowered Standing Committee and deposited 2% prescribed fees on 21.02.2011 (Annexure/4) within the period of one month. But the dispute has not been referred to the Empowered Standing Committee, therefore, the applicant has filed the instant Arbitration Application on 02.05.2011. The non -applicants have neither referred the dispute to the Empowered Standing Committee after the expiry of one month from 21.02.2011 (Annexure/4) or till the date of filing of the instant Arbitration Application i.e. 02.5.2011. Thus, the non -applicants have forfeited their right for reference to the Empowered Standing committee.

(3.) LEARNED counsel for the applicant submits that neither the non -applicants after the expiry of the 30 days of the date of submitting request for reference of the dispute to the Empowered Standing Committee i.e. 21.02.2011 nor till the date of filing of the instant Arbitration Application i.e. 02.05.2011 have referred the dispute to the Empowered Standing Committee, therefore, the non -applicants have forfeited the right of reference of dispute to the Empowered Standing Committee.