HEALTH AND HYGIENE v. NEW GOODWILL COOPERATIVE HOUSING SOCIETY LIMITED
1998-01-20
C.M.NAYAR
body1998
DigiLaw.ai
C. M. Nayar,j. ( 1 ) THIS petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of an arbitrator. The parties had entered into an agreement dated 30th September, 1987 for sanitary work for the construction of Group Housing Society comprising of 108 flats at Sector-9, Plot No. 33, Rohini, New Delhi. The Architects and Engineers who were appointed for the said construction are referred to as M/s Gurbachan Singh and Associates 807, Deepali, 92, Nehru Place, New Delhi-110019. The respondent has further stated in its written statement in paragraph 4 that the parties had entered into supplementary agreement dated 3rd November, 1993 and it was agreed to complete the entire work by 10th December, 1993. Clause 36 of the first agreement dated 30th September, 1987 refers to settlement of disputes by arbitration and the same reads as follows:- SETTLEMENT of Dispute Arbitration:- "36. All disputes and differences of any kind whatsoever arising out of or in connection with the contract or the carrying out of the works (whether during the progress of the works or after their completion and whether before or after the termination, abandonment or breach of the contract) shall be referred to and settled by the Architect who shall state his decision in writing, such decision may be in the form of a Final Certificate or otherwise. The decision of the Architect with respect to any of the expected matters shall be final and without Appeal as stated in the preceding Clause. But if either the Employer or the Contractor be dissatisfied with the decision of the Architect on any matter, question or dispute or any kind (except any of the accepted matters) or as to the withholding by the Architect of any Certificate to which the Contractor may claim to be entitled then and in any such case either party (the Employer or the Contractor) may within twenty eight days after receiving notice of such decision give a written notice to the other party through the Architect requiring that such matters in dispute be arbitrated upon.
Such written notice shall specify the matters which are in dispute and such dispute or difference of which the written notice has been given and none other shall be and is hereby referred to the Arbitration and final decision of a single Arbitrator being a Fellow of the Indian Institute of Architects to be agreed upon and appointed by both the parties or in case of disagreement as to the appointment of a Single Arbitrator to the Arbitration of two Arbitrators both being fellows of the Indian Institute of Architects, one to be appointed by each party, which arbitrators shall before taking upon themselves the burden of reference appoint an Umpire. THE Arbitrator, the Arbitrators or the Umpire shall have power to open up, review and revise any Certificate, opinion, decision requisition or notice, save in regard to the excepted matters referred to the preceeding clause, and to determine all matters in dispute which shall be submitted to him or them and of which notice shall have been given as aforesaid. UPON every or any such reference the cost of and incidential to the reference and Award respective shall be in the direction of the Arbitrator, or Arbitrators or the Umpire who may determine the amount thereof, or direct the same, to be taxed as between attorneys and client or as between party and party, and shall direct by whom and to whom and in what manner the same shall be borne and paid. This submission shall be deemed to be a submission to Arbitration within the meaning of the Indian Arbitration Act 1940 or any statutory modification thereof. The Award of the Arbitration or Arbitrators or the Umpire shall be final and binding on the parties. Such references except as to the withholding by the Architect of any certificates under Clause 31 to which the Contractor claims to be entitled, shall not be opened or entered upon until after the completion or alleged completion of the works or until after the practical cessation of the works arising from any cause unless with the written consent of the Employer and the Contractor.
Provided always that the Employer shall not withhold the payment of an Interim Certificate, nor the Contractor except with the consent in writing of the Architect, in any way delay the carrying out of the works by reason of any such matter, question or dispute being referred to Arbitration, but shall proceed with the work with all the diligence and shall, until the decision of the Arbitrator or Arbitrators or the Umpire to be given, abide by the decision of the Architect and no Award of the Arbitrator or the Arbitrators or the Umpire shall relieve the Contractor of his obligations to adhere strictly to the Architect s instructions with regard to the actual carrying out of the works. The employer and the Contractor hereby also agree that Arbitration under this Clause shall be a condition precedent to any right of action under the Contract. " ( 2 ) THE disputes arose between the parties and are referred to in paragraph 7 of the application. There is no denial that such disputes or any other disputes and claims and counter claims as may be raised by the respondent are referable to arbitration as provided under the above said clause and the learned counsel for both the parties are agreeable that the disputes should be referred to arbitration as provided in the agreement dated 30th September, 1987. It is ordered accordingly. The arbitrator shall enter upon the reference within four weeks from the date of passing of this Order and will give his Award as expeditiously as possible to conclude the matter. ( 3 ) THE Court made an interim Order on April 28, 1997 by which the respondent was restrained from handing over possession of Flat Nos. A-4, A-6, B-13, B-3 and C-8. The learned counsel for the respondent contends that these flats stand allotted vide letter received from the Delhi Development Authority dated 20th March, 1995 and it will cause irreparable loss and injury to the allottees if they are restrained from occupying these flats. The disputes have now been referred to arbitration and it will not be necessary to continue the interim Order made by this Court. The same stands vacated. It is however, made clear that the parties will abide by the Award as rendered by the arbitrator in due course of time. This petition is allowed in the above terms.
The disputes have now been referred to arbitration and it will not be necessary to continue the interim Order made by this Court. The same stands vacated. It is however, made clear that the parties will abide by the Award as rendered by the arbitrator in due course of time. This petition is allowed in the above terms. There will be no order as to costs.