Manak Mohta, J.—Heard learned counsel for the parties in respect of application filed under Sec. 11 read with Sec. 10 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act of 1996”) for appointment of Arbitrator. 2. It is submitted by the learned counsel that the applicant is partnership firm registered under the Indian Partnership Act, 1932 with the Registrar of Firms, Rajasthan, Jaipur and is engaged in the work of contractorship. The applicant was awarded work contract valuing Rs. 2,73,340.07 for “Canal Lining Work RD 121-122 Kms for Jodhpur Lift Canal Package No. CLC-02” vide agreement No. 10/1990-91 having arbitration Clause 23 in it, wherein it has been provided that in case any sort of dispute arises in respect of said agreement, the matter will be referred to Arbitrator. 3. It is further stated that as per the work-order, the work was to commence from 08.11.1989 and was to be completed by 08.03.1990. The applicant completed the contract-work by 10.09.1990 but the total payment and the refund of security was not made as per the terms. The delay in completing the work between 08.03.1990 to 10.09.1990 was beyond the control of the applicant, for that contractor cannot be blamed. After completion of work, the applicant raised demand of Rs. 2,08,501/- plus interest thereon @ 18% per annum from 11.09.1990 but the payment of the contractor was withheld without any rhyme or reason. Even after submitting representation, neither any payment was made nor the Department responded to the memorandum sent by the applicant, on which the applicant sent reminders on 19.07.1995, 04.05.1998, and 11.09.1990 for release of payment due with the Department. It is further submitted that a legal notice dt. 16.03.2000 in terms of Arbitration Clause was also given to the Chief Engineer, P.H.E.D., Jaipur alongwith two demand drafts No. 180319 and 180320 dt. 16.03.2000 for a sum of Rs. 250/- each (total Rs. 500/-) for referring the dispute to Arbitrator as per Clause 23 of the Agreement, but of no avail. Thereafter an application was filed in this respect. Thus, it is prayed that the Application may be allowed and the matter be referred to Arbitrator. 4. Learned Government Advocate opposed the application. It was contended that the applicant has not placed full facts before the Court and has raised a dispute of wrong claim. As per the record, Department has demand of Rs. 6428/-.
Thus, it is prayed that the Application may be allowed and the matter be referred to Arbitrator. 4. Learned Government Advocate opposed the application. It was contended that the applicant has not placed full facts before the Court and has raised a dispute of wrong claim. As per the record, Department has demand of Rs. 6428/-. The applicant has not co-operated in finalization of the dispute, therefore, he is not entitled to get the dispute referred to arbitrator and his application deserves to be rejected, that may be dismissed. 5. I have heard both the learned counsel for the parties and have gone through the material available on record and the contentions advanced before me. 6. After considering the contentions, it is the admitted fact on record that a work-contract was given to the applicant and an Agreement No. 10/1990-91 was executed between the parties. Further, the factum of dispute has been raised and for resolving that dispute, provision of arbitration Clause is there in the agreement itself, which is prima facie established. It is also borne out from the application that the applicant had sent letters for referring the dispute to “Standing Committee” and the applicant had also deposited the requisite fees for referring the dispute to Arbitrator in terms of Clause 23 of the agreement but despite that, the matter was not referred to Arbitrator. 7. In the result, the application is allowed. Shri M.C. Mehta, Superintending Engineer (Retd.), 490 Kamla Nehru Nagar, Near First Puliya, Chopasni Road, Jodhpur (Raj.) is hereby appointed as the Sole Arbitrator to resolve the dispute between the parties. The parties are free to raise their dispute, claim, counter-claim etc., before the Arbitrator. Initial expenses of Rs. 2,500/- shall be deposited (subject to adjustment at the time of final determination of fees) by the applicant with the Arbitrator so that the learned Arbitrator may start the arbitral proceedings. The fee of arbitrator and the cost of arbitration shall be determined by the Arbitrator himself and that shall be borne equally by the parties. The Arbitrator may be informed accordingly. The application stands disposed of accordingly. * * * * *