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1988 DIGILAW 182 (DEL)

SUBHASH CHAND VERMA v. DELHI DEVELOPMENT AUTHORITY

1988-07-26

S.N.SAPRA

body1988
S. N. Sapra ( 1 ) PETITIONER has filed the present petition under Sections 8 (2) and 20 of Arbitration Act, 1940, thereby praying that the arbitration agreement between the parties be filed in Court and an arbitrator be appointed to decide the disputes between the parties. ( 2 ) PETITIONER was awarded the road work of construction of restaurant conference hall, that is development such as construction of road, paths, sewer line, boundary wall, fencing and development area around picnic huts, etc. , near District Park, Kalkaji, New Delhi. An agreement No. 31/ee/cdi/dda/85-86 was entered into between petitioner and Delhi Development Authority. It is alleged that the work was completed on February 10, 1986 and the final bill for the work was submitted to respondents on March 6, 1986. The final bill was not paid to petitioner. Certain disputes arose between the parties relating to the agreement and as such petitioner served a notice dated April 15, 1986 on Engineer Member of Delhi Development Authority to appoint an arbitrator as the agreement between the parties contained an arbitration clause. The disputes have been mentioned in para 5 of the petition. ( 3 ) RESPONDENTS filed written statement. The existence of agreement has not been denied. However, the allegations have been denied by respondents on merits. It is alleged that certain detects in the work done by petitioner were pointed out to petitioner. Petitioner failed to rectify the same. Respondents have admitted that petitioner served the notice dated April 15, 1986 on the Engineer Member of respondent No. 1, but no disputes were specified. Only claims were submitted and petitioner wanted the same to be referred to the arbitration. Petitioner was informed vide letter dated May 26, 1986 to send his application in the prescribed proforma for appointment of arbitrator. ( 4 ) ON the pleadings of parties, following issues were framed : (1) Whether there is any valid, legal and subsisting arbitration agreement between the parties with respect to the disputes now raised by the petitioner ? OPP (2) Whether there exists no dispute which can be referred to the named arbitrator ? OPD (3) Relief,parties led evidence by means of affidavits. ( 5 ) IN his affidavit, petitioner has supported the allegations, as made in the petition. Clause 25 which is an arbitration clause in the agreement has been reproduced. OPP (2) Whether there exists no dispute which can be referred to the named arbitrator ? OPD (3) Relief,parties led evidence by means of affidavits. ( 5 ) IN his affidavit, petitioner has supported the allegations, as made in the petition. Clause 25 which is an arbitration clause in the agreement has been reproduced. Respondents have not denied the existence of the arbitration clause. ( 6 ) THE disputes, as alleged in the petition are covered by the arbitration clause. I am of the view that there exist a valid, legal and subsisting arbitration agreement between the parties and the disputes as have been alleged in the petition are to be decided by an arbitrator, to be appointed inaccordance with arbitration clause. ( 7 ) I allow the petition. I direct respondents to file the arbitration agreement in the Court. I direct the Engineer Member of DDA to appoint an arbitrator inaccordance with clause 25 of the Agreement within one month from today and refer the disputes, as mentioned in the petition, to the arbitrator. Parties are left to bear their own costs.