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2020 DIGILAW 820 (TS)

Union of India v. Multiamp Engineers Private Limited

2020-11-30

A.RAJASEKHAR REDDY

body2020
ORDER : 1. This Arbitration Application is filed under Section 11(4) of the Arbitration and Conciliation Act, 1996 for appointment of sole arbitrator to adjudicate the claims and disputes between the parties arising out of and in connection with C.A. No. GE(U)/SEC/22 of 2017-2018, dated 15.11.2017. 2. The petitioner is a Military Engineering Service unit under the Ministry of Defence. In order to provide fire prevention system at Gandhi Block of CDM under the GE(Utility), Secunderabad, it called for tenders based on online system. Thereafter, the respondent became the successful bidder and an agreement dated 15.11.2017 was executed between the petitioner and the respondent. As disputes arose between the petitioner and respondent, the petitioner issued letter dated 27.05.2019 calling upon the respondent to pay an amount of Rs. 4,80,899/- towards extra expenditure against risk and cost contract and compensation for delay in commencement of the tender contract work. The respondent did not respond to the same. As per sub-section 5 Section 12 of the Act, waiver agreement has been sent to the contractor vide letter dated 23.09.2019 duly signed by the accepting officer of the contract, but there is no response from the respondent. Subsequently, the petitioner also issued reminder on 14.10.2019 for returning the waiver agreement duly signed, but till date, the said document has not been received by the petitioner from the respondent. Though the petitioner issued notice dated 23.09.2019 invoking arbitration clause contained in Clause-70 of General Conditions of Contract which forms part of the agreement dated 15.11.2017 and also tender process and same is served, there was no response from the respondent Contractor. Aggrieved by the same, present Arbitration Application is filed. 3. Smt. B. Niveditha, learned counsel appearing on behalf of Sri. Namavarapu Rajeshwar Rao, learned Assistant Solicitor General for petitioner submits that since existence of arbitration clause-70 of General Conditions of Contract which forms part of the agreement dated 15.11.2017 is not disputed and since the same is invoked by the petitioner, an independent arbitrator may be appointed by this Court. 4. Though, notice is served on respondent, no counter is filed rebutting the averments in the affidavit filed in support of the application and there is no appearance opposing this Arbitration Application, which goes to show that existence of Arbitration Clause is not disputed. 4. Though, notice is served on respondent, no counter is filed rebutting the averments in the affidavit filed in support of the application and there is no appearance opposing this Arbitration Application, which goes to show that existence of Arbitration Clause is not disputed. As there is no reply from the respondent to the two notices issued by the petitioner on 23.09.2019 and 14.10.2019, this Arbitration Application needs to be allowed. 5. Accordingly, this Arbitration Application is allowed nominating Sri. D. Narendar Naik, Advocate, as an arbitrator for adjudicating the disputes between the parties. However, it is open for both the parties to raise all the contentions before the arbitrator. 6. There shall be no order as to costs. As a sequel thereto, miscellaneous applications, if any, pending in this Arbitration Application, shall stand dismissed.