Shri Shiv Shakti Projects Pvt. Ltd. v. Air Port Authority of India
2006-07-13
SHIV KUMAR SHARMA
body2006
DigiLaw.ai
Judgment Shiv Kumar Sharma, J.-Heard. 2. In the instant application the applicant has prayed for appointment of independent arbitrator. 3. Clause 25 of the agreement provides as under: “Except where otherwise provided in the contract all question and disputes relating to the meaning of the specifications, designs, drawings and instructions herein before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right matter or thing whatsoever, in any way arising out of or relating to the contract, designs, drawings, specifications, estimates, instructions, orders or these conditions or otherwise concerning the work of the execution of failure to execute the same whether arising during the progress of the work or after the completion or abandonment thereof shall be referred to the sole arbitration of the person appointed by the Chairman/Member (Planning) Airport Authority of India/Executive Director Engineering AAI (IAD) at the time of dispute it will be no objection to any such appointment that the arbitrator so appointed in Airports Authority of India (International Airports Division’s) employee that he had to deal with the matters to which the contract relates and that in the course of his duties as Air Port Authority of India’s (International Airports Division) employee he had expressed views on all or any of the matters in dispute or difference. The arbitrator to whom the matter is originally referred being transferred or vacating his office or being unable to act for any reason. Chairman/Member (Planning) Airport Authority of India/Executive Director Engineering AAI (IAD) administrative head of the Department of Engineering as aforesaid at the time of such transfer, vacation of the office or in ability to act shall appoint another person to act as arbitrator in accordance with the terms of the contract. Such person shall be entitled to proceed with the terms of the contract. Such person shall be entitled to proceed with reference from the stage at which it was left by his predecessor. It is also a term of this contract that no person other than person appointed by Chairman/Member Planning AAI or Administrative Head of Department of Engineering of the Authority as aforesaid should act arbitrator and if for any reason that is not possible, the matter is not to be referred to arbitration at all. In all cases where the amount of the claim in dispute is Rs.
In all cases where the amount of the claim in dispute is Rs. 75,000/-(Rupees Seventy Five Thousand) and above the arbitrator shall give reasons for the award. Subject as aforesaid the provisions of the Indian Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof and the rules made thereunder and for time being in force shall apply to the arbitration proceeding under this clause”. 4. It is not in dispute that the applicant within 90 days of the receipt of final bill sent a notice on 20.06.2005 by registered post claiming the amount in the sum of Rs. 40,77,600.46. The registered notice was served on respondents, but the respondents neither replied the same nor they appointed the arbitrator even after expiry of thirty days from the date of the notice. 5. For these reasons, since the respondents failed to act in accordance with the agreed procedure provided in Clause 25 of the agreement, the appointment of independent arbitrator as required in Section 11 of the Arbitration and Conciliation Act, 1996 is necessary. 6. I, therefore, appoint Hon’ble Justice P.K. Tiwari (retired) as sole Arbitrator. The Arbitrator shall fix his fee and terms for disposal of the dispute in the circumstances so warranted. 7. The application stands allowed as indicated herein above.