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1988 DIGILAW 92 (DEL)

W. S. CONSTRUCTION COMPANY v. DELHI DEVELOPMENT AUTHORITY

1988-04-27

JAGDISH CHANDRA

body1988
Jagdish Chandra ( 1 ) THIS is a petition under sections 8 and 20 of the Arbitration Act, 1940 moved by the petitioner against Delhi Development Authority (for short dda ) for referring the disputes between the parties to arbitration as provided in Clause 25 of the agreement which is the arbitration clause. The contract was entered into between the parties whereby the petitioner was to construct 312 Janta Dwelling Units at Ram Para Pocket b vide agreement No. 22/ee/cdvi/dda/80-81. It is asserted that the disputes and differences have arisen between the parties and the same are set out in para No. 12 of the petition. ( 2 ) THE petition has been resisted by the respondents. ( 3 ) IT is contended by the learned counsel for the respondents that the petitioner had not made any demand for arbitration in writing within 90 days in regard to any of its claims. The relevant clause is an integral part of clause 25 which is the arbitration clause and it reads as follows : "it is also a term of the contract that if the contractor (s) does/do not make any demand for arbitration in respect of any claim (s) in writing within 90 days of receiving the intimation from the Engineerin-Charge that the bill is ready for payment, the claim (s) of the contractor (s) will be deemed to have been waived and absolutely barred and the Delhi Development Authority shall be discharged and released of all liabilities under the contract in respect of those claims. " ( 4 ) THIS contention of the learned counsel for the respondent has no force for the reason that the demand could not be made by the petitioner/ contractor within a period of 90 days of receiving the intimation from the Engineer-in-Charge that the bill was ready for payment. Admittedly, no intimation from the Engineer-in-Charge was given to the petitioner that the bill was ready for payment, and, consequently, there was no question of the petitioner making any demand in respect of any claim/claims within 90 days of the receiving of such intimation. Mr. Dua, counsel for the respondents submits that no intimation from the Engineer in-Charge that the bill is ready for payment could be given to the petitioner as the bill had not been submitted by the petitioner. Mr. Dua, counsel for the respondents submits that no intimation from the Engineer in-Charge that the bill is ready for payment could be given to the petitioner as the bill had not been submitted by the petitioner. This further shows that there was no question of any intimation from the Engineer in-Charge and consequently no question of the petitioner making any demand in writing. ( 5 ) THERE is, thus. no objection to the acceptance of this petition and consequently, accepting the petition I direct that the arbitration agreement be filed in court and the disputes and differences arisen between the parties and enumerated in para No. 12 of the petition are now referred to the sole arbitration of the arbitrator who shall be appointed as such by the Engineer Member, Delhi Development Authority. The arbitrator be appointed by the Engineer Member, D. D. A. within two months from today. No order as to costs.