TRIMURTI CONSTRUCTIONS, AJMER Vs. VICE CHANCELLOR, MAHARANA PRATAP UNIVERSITY OF AGRICULTURE AND TECHNOLOGY, UDAIPUR AND ANR

JUDGEMENT

(1.) This application is preferred for appointment of an independent Arbitrator to settle the dispute/claims said to be arising out of the work order dated 13.06.2011. Suffice to mention here that the applicant, a contractor with the Public Works Department in "AA" class, entered into a contract with the respondent Maharana Pratap University of Agriculture and Technology for "Construction of University Girls Hostel MPUAT, Udaipur". The work in pursuant to the work order concerned was to be commenced on 24.06.2011 and to be completed till 23.05.2012.

(2.) As per the applicant, some delay occurred in commencing the work due to the reasons assigned to the respondent University. The applicant ultimately suffered certain losses due to unilateral action of the University, thus, a notice for demand of justice dated 29.09.2012 was served upon the University through counsel for the applicant. The applicant claimed for payment of a sum of Rs.47,20,206/-. On receiving no adequate response, the applicant by the notice dated 31.10.2012 called upon the respondent University for getting the dispute settled as per clause 23 of the agreement by treating the clause aforesaid as arbitration clause in the agreement. Despite expiry of period of one month from the date of service of the notice, the dispute was not referred to the standing committee as per clause 23 of the agreement; hence, this application is preferred with a claim for appointment of an independent arbitrator. While contesting the application, the stand of the University is that clause 23 of the agreement is not an arbitration clause; hence, the application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short, 'the Act of 1996') is not maintainable.

(3.) Per contra, it is submitted by learned counsel for the applicant that under clause 23 of the agreement, the dispute between the parties is required to be referred to a competent standing committee, therefore, the same is nothing but an arbitration clause and on being failed to refer the dispute for its adjudication to the standing committee, an independent and impartial Arbitrator is required to be appointed in accordance with the provisions of Section 11 of the Act of 1996.