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2006 DIGILAW 1748 (RAJ)

Sisram Bir Singh v. Union of India

2006-05-18

SHIV KUMAR SHARMA

body2006
JUDGMENT 1. - In all these applications the applicant seek to appoint independent Arbitral Tribunal under section 11 of the Arbitration and Conciliation Act, 1996. 2. The respondents raised preliminary objections about maintainability of applications in view of special condition of the Contract which provides as under: 'The provision of clauses 63 and 64 to the general conditions of contract will be applicable only for settlement of claim of dispute between the parties for values less than equal to 20% of the value of the contract, and when claims or disputes are of value more than 20% of the value of the contract. Provision of clause 63 and 64 and other relevant clauses of the general conditions of contract will not be applicable and arbitration will not be remedy for settlement of such disputes." 3. Coming to the averments made in the instant applications I notice that in Application No. 04/2004 it was stated that the applicant completed the work of Rs. 16,95,000/- out of which the applicant claimed a sum of Rs. 11,18,493/- alongwith the amount of security and loss of profit. In Application No. 07/2004 the applicant was awarded the work amounting to Rs. 16,95,000/-. The applicant claimed Rs. 10,12,050/- alongwith the amount of security and loss of profit. In Application No. 08/2004 the applicant completed the work of Rs. 16,95,000/- out of which the applicant claimed a sum of Rs. 10,12,050/- alongwith the amount of security and loss of profit. 4. Undeniably amount claimed by the applicant is more than 20% and in view of exclusionary clause contained in special condition of the contract, the disputes raised in the instant applications cannot be referred under clauses 63 and 64 to the Arbitral Tribunal. 5. My view finds support from the ratio indicated in State of A.P. v. Obulu Reddy, (1999) 9 SCC 568 , wherein their Lordships of the Supreme Court observed as under:- (Para 5) "... Having perused GOM's No. 430, dated 24.10.1983 we have no doubt that it clearly provides for arbitration in respect of claims only upto Rs. 50,000/- and not above that amount, making it clear in para 2 that the claims above Rs. 50,000/- are to be adjudicated by the Court of competent jurisdiction. 6. For these reasons, I find no merit in the instant applications and the same accordingly stand dismissed.Applications Dismissed. *******