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2013 DIGILAW 943 (RAJ)

Durga Prasad and Co. v. State of Rajasthan

2013-05-08

VINEET KOTHARI

body2013
JUDGMENT 1. - Heard learned counsels for the parties. 2. The present writ petition has been filed by the petitioner against the PDR recovery of the contractual amount under the contract awarded by the respondent-I.G.N.P. Project of the State Government. 3. Under the interim order of this Court the petitioner has deposited a sum of Rs. 3 lacs against disputed demand of Rs. 13,19,251/- pursuant to order passed on 29.04.2011 by a coordinate bench of this Court. 4. Mr. V.K. Aggarwal, learned counsel for the petitioner-contractor submitted fairly enough that due to family circumstances, the petitioner intends to deposit the remaining sum of Rs. 10,19,251/- besides already deposited sum of Rs. 3 lacs, the petitioner shall also clear off the dues of the respondent- Department, subject to its right to litigate the issue in the present writ petition. 5. Upon a Court question as to why dispute between the parties arising out of the contract cannot be resolved by an alternative dispute resolution mechanism through Arbitrator, since the Government contracts contains an arbitration clause, namely, Clause 23 in the present case also. 6. Both the learned counsel for the parties fairly agreed for the same. 7. Accordingly, this writ petition is disposed of with liberty to the parties who are being relegated to the Arbitrator under Clause 23 of the contract between the parties to raise their respective claims before the Arbitrator. It is further directed that the respondent- Department shall appoint the Arbitrator under the said Clause 23 expeditiously within a period of two months from today and the said Arbitrator is requested to expeditiously decide the arbitration proceedings, preferably within a period of one year from now. The petitioner-contractor may, however, deposit the balance amount of Rs. 10,19,251/- and shall thus clear off the PDR dues of the respondent IGNP, of course, subject to his rights or dispute or claim raised before the learned Arbitrator. Both the parties will be at liberty to raise their respective claims before him and the learned Arbitrator decide the same in accordance with provisions of Arbitration & Conciliation Act, 1996. It is also made clear that upon payment by the petitioner, as aforesaid, the property in question attached by the learned SDO under the Public Demands Recovery Act, shall be released forthwith. The amount thus deposited by the petitioner shall also be released to the respondent-IGNP Deptt. It is also made clear that upon payment by the petitioner, as aforesaid, the property in question attached by the learned SDO under the Public Demands Recovery Act, shall be released forthwith. The amount thus deposited by the petitioner shall also be released to the respondent-IGNP Deptt. subject to giving their undertaking that in case the claim of the plaintiff-petitioner succeeds before the learned Arbitrator, they would refund back the said amount with interest @ 6% p.a. and both the parties shall abide by the final award of the learned Arbitrator. No costs. A copy of this order be sent to the concerned parties forthwith.Petition Disposed of. *******