MEHTA ASSOCIATES Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) The applicant M/s. Mehta Associates entered into an agreement with the respondents for "Construction of Aqueducts at RD 500 m & RD 1700 m of Saroda Minor of Bhika Bhai Sagwara Canal (BBSC), District Banswara". The contract amount of the work was of Rs. 74,51,756/-. The work commenced on 01.3.2010 and was to be completed on or before 31.4.2011. As per the applicant, the Superintending Engineer and Executive Engineer of the respondent department created several hurdles in completion of work that resulted into stoppage of the work assigned. The applicant then submitted its claim for a sum of Rs. 13,08,273/-. The amount claimed was not paid in totality, thus, the applicant by a notice dated 18.3.2013 made a request to the Executive Engineer, Distributary Division, LMC, Mahi Project Garhi, District Banswara to invoke Clause 23 of the contract that pertains to arbitral proceedings. No positive action was taken by the respondents, thus, this application as per provisions of Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act of 1996') was presented before this Court on 10.6.2013.

(2.) After filing of the application aforesaid the applicant in the month of September, 2014 received a notice for appearing before the Standing Committee to get the dispute resolved. The applicant responded the notice with assertion that no proceedings could have been referred to the Standing Committee as an application under Section 11(6) of the Act of 1996 was already filed and is pending consideration before Hon'ble Rajasthan High Court. Inspite of having this information, the Standing Committee passed an award on 7.10.2014.

(3.) Learned counsel for the applicant while placing reliance upon a judgment of this Court in M/s. Mahendra Singh & Co. vs. State of Rajasthan & Anr., 2014 1 RajLW 514, submits that no reference proceedings as per Clause 23 could have been undertaken by the respondents after expiry of limitation period of 30 days from the date of receiving notice sent by the applicant for initiating process of arbitration.