M/S. A. CUBE ASSOCIATES Vs. UNION OF INDIA THROUGH THE GENERAL MANAGER, NORTH WESTERN RAILWAY, JAIPUR AND ANR.

JUDGEMENT

(1.) This arbitration application has been filed by the applicant under section 11 (6) of the Arbitration and Conciliation Act, 1996 ("the Act") for appointment of Sole Arbitrator on account of the respondents failing in appointing the arbitrator in terms of the arbitration clause in the contract.

(2.) The applicant, a partnership firm, was awarded a contract by the respondent-North Western Railway, Jodhpur for the performance of the work-CTR (P) of 14.66 Kms. from 0.00 to 14.66 between MTD-MEC section under ADEN/MTD. A dispute having been arisen, the applicant invoking the arbitration clause by way of notice demanded for reference of the dispute to arbitration. On failure of the respondents to agree for appointment of arbitrator, the applicant approached this court by way of an application under Section 11 of the Act, for appointment of arbitrator.

(3.) As per clause 76 of the agreement, the provisions of clause 63 and 64 of the General Condition of Contract are applicable only for settlement of the dispute between the parties for the value less than or equal to 20% of the value of the contract. Since, the claim made by the applicant was more than 20% of the value, the authority designate of the Chief Justice held that no arbitrator can be appointed for adjudication of the dispute. However, while refusing the prayer, it was categorically observed that if applicant desires to restrict its claim to the extent of 20% of the contract value, it may do so by serving a fresh notice of claim with the prayer for appointment of arbitrator upon the respondents, subject to all legal objections.