CHETAN CONSTRUCTION CO Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THIS is an application for appointment of an arbitrator in terms of Clause 23 of the Agreement which was executed between the applicant-Construction Company and respondent No. 2-the Additional Chief Engineer, Public Works Department of the Government of Rajasthan while awarding the contract to the applicant.

(2.) IT is an admitted fact that a dispute is existing between the petitioner and the respondent in regard to the determination of the amount which is payable by the respondent to the petitioner for the construction work which had been undertaken and executed by the applicant and hence it is inessential to enter into its intricate details. Suffice it to say, that as per Clause 23 of the Agreement signed by the contesting parties, an arbitrator has to be appointed in the event of existence of a dispute, but the Clause is a conditional one as it is incorporated therein that the dispute first of all has to be referred to the Settlement Committee of the Department which would be constituted consisting of the Administrative Secretary concerned, (ii) Finance Secretary or his nominee not below the rank of Deputy Secretary (iii) Law Secretary or his nominee not below the rank of Joint L. R. (iv) Chief Engineer cum Addl. Secretary of the concerned department. (v) Chief Engineer concerned. However, the procedure for referring the dispute to the Settlement Committee has also been laid down under Clause 23 which stipulates that the Engineer In-charge on receipt of an application from the contractor alongwith the prescribed fee which would be 2% of the amount in dispute not exceeding Rs. one lac shall refer the dispute to the Committee within a period of one month from the date of receipt of the application. For facility of reference, relevant part of the Clause-23 is quoted herein as follows:- " The Engineer Incharge on receipt of application along prescribed fee (the fee would be two percent of the amount in dispute not exceeding Rs. one lakh) from the contractor shall refer the disputes to the committee within a period of one month from the date of receipt of application. "

(3.) THIS application stands dismissed under the aforesaid facts and circumstance. .