ARAVIND CONSTRUCTIONS P LTD Vs. CHIEF ENGINEER

JUDGEMENT

(1.) M/S.Aravind Constructions (P) Ltd., Secunderabad, the applicant company, seeks appointment of a sole Arbitrator to adjudicate its disputes with the Chief Engineer, Hyderabad Zone (Projects) MES, FY Medak, Parade Grounds, Secunderabad; the Garrison Engineer (1) (FY), Ordnance Factory Project, Eddumailaram, Sanga Reddy District; and the Union of India represented by its Engineer-in-Chief, MES, Integrated Head Quarter of MOD (Army), Kashmir House, Rajaji Marg, New Delhi, the respondents.

(2.) The applicant company's claim is valued at above Rs.1.50 crore.

(3.) The applicant company's case is as follows: It executed works at the Ordnance Factory Project, Eddumailaram, Sanga Reddy District, under several contract agreements but its final bills were not cleared. On the other hand, the respondents withheld its security deposits, retention money, bank guarantees, etc. Further, without allowing it to raise its own claim, the respondents appointed a departmental Arbitrator for their own claim but the arbitration proceedings failed due to withdrawal and resignation of the departmental Arbitrators. Thereupon, the applicant company filed O.P.No.52 of 1995 before the learned III Senior Civil Judge, City Civil Court, Secunderabad, with regard to one of the contract agreements, viz., Contract No.16 dated 18.12.1987, seeking appointment of an Arbitrator to resolve its disputes with the respondents. By order dated 16.06.2004, the trial Court appointed a retired surveyor whose name found mention in the standing panel of Arbitrators available with the respondents. This order was subjected to challenge by the respondents in C.R.P.No.6455 of 2005 before the High Court, but to no avail. However, while dismissing the said CRP vide order dated 19.08.2010, the High Court appointed Sri Justice Vaman Rao, Retired Judge, as the sole Arbitrator. Though disputes existed between the parties in relation to eight contract agreements, the arbitration was held only with regard to Contract No.16 dated 18.12.1987. The other disputes were not taken up by the sole Arbitrator. In relation to another contract agreement, being Contract No.7 of 1986-87, separate arbitration proceedings were initiated before the sole Arbitrator, Sri Justice K.Ramaswamy, Retired Supreme Court Judge. In spite of several reminders from the applicant company, the respondents neither paid the amounts claimed by it nor took recourse to the dispute resolution mechanism of arbitration.