CHANDRASHEKAR AND CO Vs. ENGINEERING PROJECTS INDIA LIMITED

JUDGEMENT

(1.) This Arbitration Application is filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 for appointment of sole arbitrator to adjudicate the claims and disputes between the parties arising out of Applicant's Arbitration Notice dated 07.12.2017.

(2.) The respondent was awarded the contract work of 'Construction of Nandakam Guest House at Ananthapalli Gunta at Tirumala' by Tirumala Tirupati Devasthanam (TTD) and the respondent sub-contracted the said work to the Applicant vide Agreement No.DLI/CON/583/322, dated 19.05.2008. Thereafter the Applicant executed the subject work but the respondent has not paid the amounts to the applicant. As such, the applicant issued Demand Notice dated 05.08.2017. Though the same was received by the respondent, no reply was given. As such, the applicant issued notice dated 07.12.2017 invoking arbitration clause in the work order. Even though the same is served on the respondent on 12.12.2017, the respondent failed to respond, as such, present application is filed.

(3.) Heard learned counsel for applicant who submits that since the respondent has not disputed the existence of arbitration clause either by replying to the demand notice or to the arbitration notice, the arbitration application needs to be allowed as the same is invoked. He also submits that the reconciliation as contended by the respondent pertains to rate of account bills not in respect of the amount demanded vide demand notice dated 05.08.2017. As such, the dispute arose as the respondent failed to pay the amounts.