M/S. KHURANA CONSTRUCTION Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS is an arbitration application filed under Secs. 10 and 11 of the Arbitration and Conciliation Act, 1996 arising out of the Arbitration Clause 64 of the General Conditions of Contract for appointment of the independent Arbitral Tribunal. As per the facts stated in the arbitration application, the Applicant and the Non -applicants entered into an Agreement No. WA/725/2/129 dt. 08.06.2006 for construction of over head tank, one lac litres capacity and 8" dia bore well in C&W at 2 Line (BG) Par". The work was scheduled to be completed within eight months' period i.e. 08.06.2006 to 07.02.2007. The work was delayed for the reason that the site was not clear, drawings and design was not ready and the lay out was not given in time, therefore, the time was extended up to 30.10.2009 by the Non -applicants and no cost or compensation was imposed. Thereafter, the work was rescinded vide order dt. 07.09.2009 (Anx. 2) dispatched to the Applicant on 17.09.2009, without any justified reason. There is Arbitration Clause No. 64 in the General Conditions of Contract, which is treated as part of the agreement. The Applicant requested the Non -applicants to appoint an independent Arbitral Tribunal by giving notice on 09.03.2010 (Anx. 4) but no independent Arbitral Tribunal was appointed by the General Manager, North -Western Railway, Jaipur, who is the competent authority, therefore, the present arbitration application has been filed for appointment of an independent Arbitral Tribunal.

(2.) REPLY has been filed on behalf of the Non -applicants wherein the preliminary objection has been raised that the arbitration application is barred by time as per Clause 64 of the G.C.C. on account of not raising the demand for arbitration after 120 days but within 180 days of the date when the same has arisen i.e. the date of rescinding the contract. As regards Clause 64, the Non -applicants have not raised any dispute.

(3.) SUBMISSION of the counsel for the Non -applicants is that the dispute is barred by time and the Applicant being a defaulter in completion of the contract, is not entitled to raise the dispute.