TRIMURTI CONSTRUCTIONS Vs. EXECUTIVE ENGINEER, PUBLIC WORKS DEPARTMENT

JUDGEMENT

(1.) A work order was granted in favour of the applicant on 15.05.2013 for construction of Industrial Training Institute building at Makrana. The proposed construction was opposed by the local residents and therefore, the same was ultimately abandoned. However, as per the applicant, prior to that, a huge investment had been made to collect raw material and other ancillary equipments. The applicant being suffered huge losses submitted a representation to satisfy the loss caused. On being failed to get any positive response, a request was made by him to refer the dispute for its adjudication to the standing committee as per clause 23 of the general conditions of contract. The respondents did not refer the dispute to the standing committee, thus, this application as per the provisions of Section 11 (6) of the Arbitration and Conciliation Act, 1996 was filed on 09.12.2013.

(2.) AFTER filing of this application, the respondents referred the dispute to the standing committee. The submission of learned counsel for the applicant is that after expiry of the period of 30 days from the date of giving notice for making reference of the dispute for arbitral proceedings, the respondents forfeited their right to make a reference, as such, the subsequent reference made is of no consequence.

(3.) IN the instant matter too, notice for making reference of the dispute was given on 25.10.2013 and till lapse of a period of 30 days, the matter was not referred for its adjudication to the standing committee. The reference was made only after filing of the instant application. As such, the law laid down in the case of M/s Mahendra Singh & Co (supra) is having absolute application in the instant matter. The respondents, as a matter of fact, forfeited their right for referring the dispute to the settlement committee after expiry of a period of 30 days from 25.10.2013, the day on which notice was served upon the respondent for making reference. In view of whatever stated above, this application deserves acceptance. Accordingly, the same is allowed. Mr. D.K.S. Rai, Chief Engineer, C.A.D., Irrigation, Kota, resident of 11/977, Chopasani Housing Board, Jodhpur, is appointed as sole Arbitrator to adjudicate the dispute between the parties as referred in the notice dated 25.10.2013. The Arbitrator appointed shall be entitled for fee, remuneration and other perquisites in accordance with the Alternative Dispute Resolution 2009 prescribed by the Rajasthan High Court. The Registry is directed to remit a copy of this order to the Arbitrator forthwith at the address given.