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2006 DIGILAW 463 (DEL)

ENGINEERING DEVELOPMENT CORP v. M. C. D

2006-03-08

MADAN B.LOKUR

body2006
( 1 ) THIS is an application under Section 11 of the Arbitration and Conciliation Act, 1996. ( 2 ) THE parties had entered in to a contract for. the construction of a rnulti storeyd school building at Turkman Gate. The stipulated date of start of work as per the agreement was 9. 5. 2003. ( 3 ) ACCORDING to the affidavit filed by the petitioner due to some incorrect drawings, it was not possible for the Petitioner to start the work immediately. In the meeting held on 21st December, 2003 it was decided that fresh drawings be prepared. On 31st december, 2003 the Respondents gave a notice to the Petitioner to collect the revised structural drawings and start the work. The petitioner says that it started the work and submitted its first running account bill on 21st September, 2004, but the amount was not released. The second running account bill was also submitted by the Petitioner to the respondents, but the payment has still not been made. ( 4 ) SINCE disputes had arisen between the parties, the Petitioner served a notice dated 4th June, 2005 invoking the arbitration agreement and calling upon the Respondents to appoint an Arbitrator. ( 5 ) THE Respondents failed to appoint an arbitrator and, therefore, the present petition was filed. ( 6 ) THE Respondents have filed a reply stating that the failure to complete the contract is entirely the fault of the petitioner and that the claims that the Petitioner has made are bogus and not worth considering. ( 7 ) THERE is no denial to the allegation that a notice for appointment of an Arbitrator was made but no Arbitrator was appointed. ( 8 ) UNDER the circumstances, I am satisfied that since disputes have arisen between the parties, they need to be referred to an arbitrator under Clause 25 of the agreement between the parties. ( 9 ) UNDER the circumstances, I appoint hon ble Mr. Justice C. K. Mahajan, a retired judge of this Court as a sole Arbitrator to adjudicate the disputes between the parties. The fees of the Arbitrator are fixed at Rs. 1 lakh, which will be shared equally by both the parties. Dasti. .