MADAN LAL KHURANA v. MUNICIPAL CORPORATION OF DELHI
1987-08-11
N.C.KOCHHAR
body1987
DigiLaw.ai
N. C. Kochhar ( 1 ) THE petitioner had entered into a contract with the respondent for widening and improvement of Bhisham Pitamah Road, starting from Ring Road upto Sewa Nagar SH: foot path and centre verge and the work was awarded to the petitioner vide letter No. 2268 dated 3rd March, 1982 issued by the respondent. A formal agreement bearing No. 291 was executed between the parties. This agreement is governed by an arbitration clause which provides that in the event of disputes arising between the parties in respect of the contract in question, the matter would be referred to the sole arbitration of a person to be appointed by the Engineer mentioned in the arbitration clause i. e. clause No. 25. ( 2 ) THIS application under section 20 of the Arbitration Act, 1940 has been filed by the petitioner stating that because of breach on the part of the respondent who has failed to give the site to him, certain disputes have arisen between the parties in regard to the payments of amounts mentioned in para 12, but in spite of the requests made by the petitioner, the respondent has not referred the disputes to the arbitration. He has prayed that the arbitration agreement be ordered to be filed and disputes be referred to arbitration. Notice was issued to the respondent who admitted the contract and the arbitration agreement between the parties, but denied that there was any default on the part of the respondent/ Municipal Corporation or that anything was due to the petitioner. On the contrary, it has been stated that the petitioner has to account for penalty due to delay and compensation, and also in regard to the price of the material issued to him. It has been prayed that if the application is allowed, the respondent reserves its right to file the counter claim before the arbitrator. In the replication, the petitioner has re-asserted that the work was delayed because of the fault of the respondent and that he is entitled to the amounts mentioned in the petition. ( 3 ) SINCE the arbitration agreement between the parties is admitted and the pleadings show that the disputes have arisen between them, I find no reason why the matter should not be referred to the arbitration and it is agreed at the Bar that the respondent may file the counter-claim before the arbitrator.
( 3 ) SINCE the arbitration agreement between the parties is admitted and the pleadings show that the disputes have arisen between them, I find no reason why the matter should not be referred to the arbitration and it is agreed at the Bar that the respondent may file the counter-claim before the arbitrator. In these circumstances, I allow this application and direct that the arbitration agreement between the parties be filed in Court and further that the disputes be referred to an arbitrator to be appointed by the Engineer mentioned in clause 25 of the agreement between the parties, within two months from today.