ASHAPURA TRADE AND TRANSPORT PVT LTD Vs. RAJASTHAN STATE ROAD TRANSPORT CORPORATION, THROUGH ITS CHAIRMAN; RAJASTHAN STATE ROAD TRANSPORT CORPORATION THROUGH ITS MANAGING DIRECTOR; EXECUTIVE DIRECTOR (ADMINISTRATION), RAJASTHAN STATE ROAD TRANSPORT CORPORATION

JUDGEMENT

(1.) This application under Section 11 of the Arbitration and Conciliation Act, 1996 has been filed by applicant inter alia with the prayer that an independent Arbitrator other than the Chairman/CMD of the nonapplicant-Corporation be appointed to resolve the dispute between applicant and the non-applicant-RSRTC.

(2.) According to the averments in the application, the applicant-company is having sole license of parcel services for the State of Gujarat with Gujarat State Road Transport Corporation (GSRTC) since 28th February, 2014. The non-applicant had published NIT and invited tender bids to issue sole license for parcel services throughout the territory of India, pursuant to which the applicant had also applied and submitted his tender bid. On 21st August, 2014, due to some discrepancy on the part of non-applicant, the applicant had to approach this Court by way of Civil Writ Petition No.7306 of 2014, wherein the Court was pleased to pass an order ex-parte order directing the concerned applicant authorities to issue sole license of parcel services throughout the territory of India in favour of the applicant. On 3rd September, 2014, the non-applicant issued sole license for parcel services in favour of the applicant and the non-applicant corporation issued a communication to the applicant for completing the formalities like submitting bank guarantee etc. The applicant submitted bank guarantee and completed all required formalities with the non-applicant corporation and communicated to nonapplicant corporation. On 22nd September, 2014, the nonapplicant corporation issued work order and also issued guidelines for performing contract on 29th September, 2014.

(3.) Shri R.P. Singh, learned senior counsel for the applicant submits the non-applicant-Corporation and the applicant entered into an agreement/contract on 5th December, 2014. As per the conditions of the agreement, the applicant was to deposit Rs.33,00,000/- per month with the non-applicant authority with effect from 1st October 2014. Applicant uptill now has regularly deposited Rs.33,00,000/- per month with the nonapplicant authority and thus complied the obligation on its part. Applicant has also deposited Rs.1,98,00,000/- in the form of Bank Guarantee and Rs.1,13,00,000/- in cash with the non-applicant corporation as prescribed in condition No.27 of the contract bid. When the applicant started his business of parcel service, he found that the drivers and conductors employed by the non-applicant Corporation are doing malpractice by accepting parcels and by taking money from the passengers, which is clearly in breach of and in violation of terms and conditions of the office order. The non-applicant is permitting other private transporters for parcel servie, which is directly in contravention of clauses 21, 22 and 23 of the office order. The applicant submitted several applications and made several representations requesting the non-applicants to comply the conditions of the agreement. Though the non-applicants have issued a letter on 11.9.2015 assuring to rectify the mistake and to come with appropriate strategic formula for smooth administration, they failed to act accordingly. No steps were taken to redress the grievances of the applicant.