UNION OF INDIA Vs. M/S. SANJEEV ENTERPRISES

JUDGEMENT

(1.) The instant appeal has been filed by the appellant against the judgment dated 18.02.2006 passed by the Additional District Judge No. 2 Kota in arbitration Case No. 1/2003 by which the objections submitted by the appellant under section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter to be referred as Act of 1996) were dismissed.

(2.) Brief fats of the case are that the appellant-department awarded the contract to the respondent No. 1 contractor (hereinafter to be referred as contractor) for construction of office building and residential quarters for Provident Fund Commissioner, Kota vide order dated 20.07.1992. It was specifically mentioned in the work order that the work was to be completed within six months from the tenth day of issue of acceptance letter dated 20.07.1992 and the letter sent by the department was received by the contractor on 25.07.1992. After issuance of the acceptance letter from the department, the contract agreement No. 18/EE/ACD/92-93 was executed and signed by the parties. The contractor did not completed the work within time. Therefore, after completion of approximate 80% of the work upto 20.07.1993, the contract was rescinded by the department under Clause 3-A, 3-B and 3-C of the contract vide letter dated 21.07.1993.

(3.) The contractor sent a notice to the department for appointing the Arbitrator under Clause 25 of the contract agreement. The department appointed Mr. V. Nenani as sole arbitrator, however the said arbitrator resigned on 11.09.1995. Thereafter, the contractor filed an application before the Court of A.D.J. No.2 Kota for appointment of new arbitrator and the Court of A.D.J. No. 2 Kota vide order dated 24.05.1998 appointed Engineer R.J. Bakhru as sole arbitrator in the matter.