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1988 DIGILAW 186 (DEL)

G. L. TEXTILES COMPANY v. UNION OF INDIA

1988-07-28

S.N.SAPRA

body1988
Sapra ( 1 ) THE present petition has been filed by petitioner under Section 20 of Arbitration Act, thereby praying that the arbitration agreement be directed to be filed in Court and the arbitrator be appointed in-accoidance with the arbitration clause. ( 2 ) NOTICE was issued to respondent to show cause as to why the arbitration agreement be not filed in Court. Respondent was duly served. None appeared on behalf of respondent. Vide order dated May 6, 1988 respondent was proceeded ex parte and petitioner was directed to file an affidavit by way of evidence. Petitioner has filed affidavit by way of evidence. ( 3 ) IN the petition, it is alleged, that respondent is a central purchase organisation of the Government of India and places the orders on the various Government/semi-Government and Public Corporation. Petitioner was placed with an order in August, 1978 for supply of Rope with Toggles for tent 80 kgs. It is alleged that certain disputes arose between the parties and respondent, however, cancelled the order on March 8, 1983 and called for further enquiry. Petitioner invoked the arbitration clause and requested that an arbitrator be appointed. ( 4 ) PETITIONER has alleged that the contract contained an arbitration clause in Clause 24 of DGS and D-68 (Revised) which reads as under : " (I) In the event of any question, dispute or difference arising under these conditions or any social conditions of contract, or in connection with this decision of which is specially provided for by these or the special conditions the same shall be referred to the sole arbitration of an officer in the Ministry of Law, appointed to be the arbitrator by the Director General of Supplies and Disposals. It will be no objection that the arbitrator is a Government servant that he had to deal with the matters to which the contract relates or that in the course of his duties as a Government servant he has expressed views on all or any of the matters disputes or differences. The award of the arbitrator shall be final and binding on the parties to this contract. The award of the arbitrator shall be final and binding on the parties to this contract. (ii) In the event of the arbitrator dying, neglecting or refusing to act or resigning or being unable to act for any reason or his award being set aside by the court for any reason, shall be lawful for the Director General of Supplies and Disposals, to appoint another arbitrator in the manner aforesaid. (iii) It is further a term of this contract that no person other than the person appointed by the Director General of Supplies and Disposals, as aforesaid should act as arbitrator and that, if for any reason that is not possible, the matter is not to be reference to Abitration at all. (iv) The arbitrator may from time to time with the consent of all the parties to the contract enlarge the time for making the award. (v) Upon every and any such reference the assessment of the costs incidental to the reference and award respectively shall be in the discretion of the arbitrator. (vi) Subject as aforesaid, the Arbitration Act, 1940 and the rules thereunder and any statutory modification thereof for the time being in force shall be deemed to apply to the arbitration proceedings under this clause. (vii) If the value of the claim in a reference exceeds Rs. 1 lakh the arbitrator shall give reasoned award. " ( 5 ) PETITIONER has alleged disputes and differences in para 10 of the petition. ( 6 ) PETITIONER has filed an affidavit by way of evidence thereby supporting the allegations, made in the petition. ( 7 ) I am of the view that there exists valid, subsisting and binding arbitration agreement between the parties, and the disputes, as mentioned in para 10 of the petition, are covered by the arbitration clause. Petition is allowed. I direct that the arbitration agreement be filed in Court. I direct Director General of Supplies and Disposal Government of India to appoint an arbitrator in accordance with clause 24 of DGS and D-68 (revised) General Conditions of contract, within two months from the date of the receipt of communication of this Order and refer the disputes to the arbitrator. Copy of this order be sent to respondent.