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2023 DIGILAW 1147 (MAD)

S. K. Engineering and Construction Company, Rep. by its Authorised Signatory, T. Sivakumar, Salem v. Bharat Heavy Electrical Ltd. , Rep. by its General Manager, Chennai

2023-03-16

KRISHNAN RAMASAMY

body2023
JUDGMENT (Prayer: Original Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, r/w Sections 6 & 7 of the Commercial Court, Commercial Division and Commercial Appellate Division of the High Courts Act, 2015, praying to pass an order of appointing a Sole Arbitrator to resolve the dispute between the petitioner and the respondent under the contract for work of civil, structural and architectural works of Utility Boiler and Allied works for 1 x 150 TPH RESID upgradation project at CPCL, Manali, Chennai and the balance civil works of RCC, Twin Flue Chimney of Utility Boiler VI and RESID upgradation project at CPCL, Manali.) 1. This petition has been filed under Section 11(6) of Arbitration and Conciliation Act, 1996, (hereinafter referred as “the Act”), seeking to appoint an Arbitrator to resolve the dispute between the petitioner and the respondent under the Letter of Intent issued by the respondent to the petitioner dated 31.08.2015 and 06.10.2015. 2. Learned counsel appearing for the petitioner would submit that the present dispute is arising out of the Letter of Intent issued by the respondent to the petitioner dated 31.08.2015 and 06.10.2015, which is arbitrable in terms of Clause 2.21 of the General Conditions of Contract. The petitioner has also sent a legal notice dated 20.05.2022 to the respondent invoking the said arbitration clause. Though the respondent received the said notice on 22.05.2022, there was no reply from the respondent. Therefore, the petitioner has filed the present petition for appoint Sole Arbitrator to resolve the dispute. 3. Learned counsel appearing for the respondent initially submitted that there is a chance for settlement. However, later he submitted that the settlement is not possible and agreed to appoint Sole Arbitrator. 4. Heard the learned counsel appearing for the petitioner as well as the respondent and perused the materials available on record. 5. 3. Learned counsel appearing for the respondent initially submitted that there is a chance for settlement. However, later he submitted that the settlement is not possible and agreed to appoint Sole Arbitrator. 4. Heard the learned counsel appearing for the petitioner as well as the respondent and perused the materials available on record. 5. For better appreciation, Clause 2.21 of the General Conditions of Contract is reproduced hereunder: “2.21 Arbitration and Conciliation 2.21.1 In case amicable settlement is not reached in the event of any dispute or difference arising out of the execution of the Contract or the respective rights and liabilities of the parties or in relation to interpretation of any provision by the Contractor in any manner touching upon the Contract, such dispute or difference shall (except as to any matters, the decision of which is specifically provided for therein) be referred to the sole arbitration of the arbitrator appointed by BHSL/in charge (Region) The award of the Arbitrator shall be binding upon the parties to the dispute.” 6. In view of the above submissions and a perusal of the aforesaid Arbitration Clause of the General Conditions of Contract, it is clear that the present dispute is arbitable in terms of the said agreement. Hence, this Court is inclined to appoint an Arbitrator to adjudicate the dispute between the petitioner and the respondent. i) Accordingly, the Hon''ble Mr.Justice T.Ravindren, Former Judge, Madras High Court, residing at New No.27, Old No.12, III Avenue, Indira Nagar, Adyar, Chennai – 600 020, (Contact No.9941350926), is appointed as the Arbitrator to enter upon reference and adjudicate the disputes inter se the parties. ii) The learned Arbitrator appointed herein, shall after issuing notice to the parties and upon hearing them, pass an award as expeditiously as possible, preferably within a period of six months from the date of receipt of the Order, without influencing any of the observations made by this Court in this order. iii) The learned Sole Arbitrator appointed herein shall be paid fees and other incidental charges, fixed by him and the same shall be borne by the parties equally. iv) In the event of non-appearance of the respondent herein, the petitioner herein shall bear the entire remuneration and other expenses and thereafter, the petitioner can recover the same directly from the respondent herein. 7. This Original Petition is ordered accordingly, leaving the parties to bear their own costs. iv) In the event of non-appearance of the respondent herein, the petitioner herein shall bear the entire remuneration and other expenses and thereafter, the petitioner can recover the same directly from the respondent herein. 7. This Original Petition is ordered accordingly, leaving the parties to bear their own costs. Since this Court has appointed an Arbitrator, it is open to the petitioner as well as the respondent to seek other reliefs under the provisions of Arbitration and Conciliation Act 1996 before the Arbitrator.