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2009 Supreme(SC) 1130

B.S.CHAUHAN, MUKUNDAKAM SHARMA
Eastern Coalfields Ltd – Appellant
Versus
Sanjay Transport Agency – Respondent


Advocates appeared:
For the Appellant :Mahabir Singh, Sr. Adv., Ms. Aishwarya Bhati, Ms. Sweta Rani. G.P. Capt. Karan Singh Bhati, Advocates.
For the Respondents:S.C. Singhal, Parma-nand Gaur, Advocates.

JUDGMENT

Dr. Mukundakam Sharma, J.—

1. This appeal is directed against the order dated 9 th January, 2006 whereby the Calcutta High Court referred the dispute arising between the parties herein to the sole arbitration of Hon’ble Mr. Justice D.K. Basu a retired Judge of Calcutta High Court, with a request to him to adjudicate upon and decide the dispute between the parties. The aforesaid order came to be passed on an application filed by the respondents herein under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’). By filing the said application, the respondents prayed for appointment of an arbitrator relying on the alleged arbitration agreement being clause No. 14.

2. The parties entered into an excavation contract whereby the respondents undertook to carry out certain works on behalf of the appellant herein. In the contract signed by the parties there is a clause being clause No. 14 with the caption “Settlement of Disputes/Arbitration”. Part of the said clause which is relevant to the context of this case is reproduced hereunder :

“.......It is incumbent upon the contractor to avoid litigations and disputes during the course of ex








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