MSK PROJECTS IJV LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THIS appeal arises out of order dated 17. 1. 2006 passed by the District Judge, Jaipur City, Jaipur, whereby the objections raised by the respondents under Section 34 of the Arbitration and Conciliation Act, 1996 (`the Act', for short) has been allowed and the award dated 1. 12. 2003, passed in favour of the appellant, by the learned Arbitral Tribunal has been set aside.

(2.) THE brief facts of the case are that by 1997, in Bhartpur the road going from Bhartpur to Mathura passed through a highly congested area of the city. THErefore, the Public Works Department (henceforth to be referred as the respondents) were satisfied that a Bharatpur Bye-pass (`the project', for short) needs to be constructed. According to respondents, the project would consist of the Bye-pass from Bharatpur to Mathura (Km. 4/553) to Bharatpur-Jaipur Road, National Highway 11 (Km 59/800 ). THE length of the Bye-pass would be 10. 850 Kms. THE project would also include the Bharatpur Deeg Road. THE Bharatpur-Deeg Road covered only 1. 25 Kms of the total project of 10. 850 Kms. (This is essential to spell out at this juncture as one of the two controversies in this case revolves around the Bharatpur-Deeg segment of the project ).

(3.) THEREFORE, vide letter dated 11. 10. 2001, the appellant invoked the Arbitration clause and prayed for appointment of an Arbitral Tribunal in accordance with Clause 18 of the Bid Document. According to Clause 18, an Arbitral Tribunal of three Arbitrator was to be appointed; one by the entrepreneur, one by the Government and third through mutual consent of both the Arbitrators so appointed by the parties. The appellant appointed Mr. A. P. Dalvi as the Arbitrator from their side and requested the respondents to appoint an Arbitrator from their side. However, the respondents did not pay any heed to the appellant's request. Hence, the appellant filed an arbitration application before this court. Vide order dated 12. 4. 2002, this Court appointed one Mr. N. P. Mathur as the Arbitrator. Subsequently, Mr. Dalvi and Mr. Mathur appointed Mr. S. M. Duggar as the third Arbitrator. Hence, the Arbitral Tribunal of three Arbitrators was duly constituted.