Bharath Enterprises Halahalli v. Commissioner Department of Revenue Survey Settlement and Land Records, K. R. Circle, Bengaluru
2020-03-19
B.VEERAPPA
body2020
DigiLaw.ai
ORDER : 1. The petitioner filed the present Civil Miscellaneous Petition under the provisions of Section S 11(5) and 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of sole arbitrator to adjudicate the dispute in terms of Clause 28.3 of the Tender Document for providing 1634 Bandh Jawans to Survey Settlements and Land Records Department dated 17.2.2016 entered into between the parties. 2. It is the case of the petitioner that first respondent issued Tender Notification dated 17.2.2016 calling for providing 37 Bandh Jawans for a period of 24 months to assist its surveyors in Chamarajanagar District in which the petitioner was a successful bidder and he was issued with the work order dated 1.12.2016. The petitioner was required to provide 37 Bandh Jawans for a period of 24 months and a sum of Rs.11,372.46/was payable to each of the Bandh Jawans as per clause (v) of the Tender Document for providing 1634 Bandh Jawans to Survey Settlements and Land Records Department dated 17.2.2016. Clause (vi) of the said tender document stipulates the successful bidder to pay the remuneration of each personnel deployed by him within five days of receipt of the monthly payment from the respondents through bank transfer to the individual bank accounts of each personnel. Further, a copy of the bank statement was required to be submitted to the respondents within 18th day of each calendar month. The petitioner provided Bandh Jawans as per the requirement of the respondents, which varied from month to month and the bills were accordingly raised. The respondents were very irregular in payments of the bills which was in violation of the terms of the contract. Despite the same, the petitioner has successfully completed the contract period of 24 months on 5.12.2018 by providing the requisite number of personnel which has been duly acknowledged by the respondents on the same day. The petitioner raised the bills for a sum of Rs.45,32,047/due from the respondents for a period from November 2017 to November 2018. Accordingly, a legal notice was also issued to the respondents calling upon to pay the balance in terms of Clause 28.2 of the tender notification. 3.
The petitioner raised the bills for a sum of Rs.45,32,047/due from the respondents for a period from November 2017 to November 2018. Accordingly, a legal notice was also issued to the respondents calling upon to pay the balance in terms of Clause 28.2 of the tender notification. 3. The 2nd respondent failed to clear the dues, instead issued an untenable reply dated 8.7.2019 alleging the petitioner to pay the wages below the fixed wages to the Bandh Jawans for a period from November 2017 to June 2018 and August 2018 and stated that if the above amounts were paid by the petitioner, the respondents would pay the balance due. The respondents have violated the Clause 28.3 of the tender document. Though the Secretary to the Department of Revenue, Government of Karnataka required to be appointed as the Arbitrator in terms of Clause 28.3 of the said tender agreement, in view of the amended provisions of Section 12(5) of the Arbitration and Conciliation Act, the same is barred for appointment of the Secretary to the Department of Revenue. Therefore, petitioner got issued legal notice dated 9.10.2019 to initiate arbitration proceedings and filed this present Civil Miscellaneous Petition for appointment of the sole arbitrator. 4. The respondents have filed objections denying the averments in this Civil Miscellaneous Petition and contended that it is the petitioner who violated the terms and conditions of the tender document and not the respondents and sought to dismiss the Civil Miscellaneous Petition. 5. I have heard the learned counsel for the parties to the lis. 6. Sri.M.C.Jayakirthi, learned counsel appearing for the petitioner reiterating the averments made in the Civil Miscellaneous Petition contended that it is not in dispute that in pursuance of the tender notification issued by the first respondent on 17.2.2016 calling for providing 37 Bandh Jawans for a period of 24 months, the petitioner was successful in the bid held by the 1st respondent and accordingly had supplied the Bandh Jawans as required by entering into the terms of the tender document dated 17.2.2016. He would further contend that though the petitioner completed his part of obligation by supplying the Bandh Jawans for a period of 24 months, the same was acknowledged by the respondents, they have failed to pay the amount due to the petitioner. Therefore, a legal notice came to be issued.
He would further contend that though the petitioner completed his part of obligation by supplying the Bandh Jawans for a period of 24 months, the same was acknowledged by the respondents, they have failed to pay the amount due to the petitioner. Therefore, a legal notice came to be issued. There is no dispute with regard to existence of the document and petitioner was successful bidder and has completed his part of obligation of contract. Despite the same, the respondents were irregular in payment of the bills raised by the petitioner. As per Section 12(5) of the Arbitration and Conciliation Act, 1996 bars appointment of the Secretary to the Department of Revenue as Arbitrator. The petitioner got issued legal notice to initiate arbitration proceedings. The respondents have failed to give any reply. Hence, the petitioner filed this Civil Miscellaneous Petition for the relief sought for. 7. Percontra,Smt.Rashmi Patel, learned High Court Government Pleader while justifying the objection has contended that it is the petitioner who violated the terms and conditions of the tender document and not the respondents and she has not disputed the amended provisions of Section 12(5) of the Act. Therefore, she sought to dismiss the Civil Miscellaneous Petition. 8. Having heard the learned counsel for the parties, it is undisputed fact that in response to tender notification issued by the first respondent, the petitioner became a successful tenderer and has provided the Bandh Jawans in terms of the agreement entered into between the parties. Accordingly, the petitioner has completed his obligations in terms of the tender document. It is also not in dispute that both the parties have entered into tender agreement in terms of the tender document for providing Bandh Jawans to Survey Settlement and Land Records Department dated 17.2.2016. It is also not in dispute that there is Arbitration clause 28.3. Though the amended provisions of Section 12(5) came into force on 23.10.2015, the same was not noticed either by the petitioner or by the State Government. 9. In view of the aforesaid admitted facts, there is no impediment for this Court to appoint the sole arbitrator to adjudicate the dispute between the parties. 10. For the reasons stated above, the Civil Miscellaneous Petition is allowed. Sri.
9. In view of the aforesaid admitted facts, there is no impediment for this Court to appoint the sole arbitrator to adjudicate the dispute between the parties. 10. For the reasons stated above, the Civil Miscellaneous Petition is allowed. Sri. Vishwanath V.Angadi, former District Judge is appointed as a sole arbitrator to adjudicate the dispute between the parties in terms of the Tender Document for Providing Bandh Jawans to Survey Settlements and Land Records Department dated 17.2.2016 entered into between the parties. 11. Registry is directed to send a copy of this order to the learned Arbitrator and the Arbitration Centre, Bengaluru, forthwith, for reference.