Court may appoint an arbitrator when parties fail to do so as per the arbitration clause, ensuring proper resolution of disputes arising from construction agreements.

ORDER :

G. BASAVARAJA, J.

1. The petitioner has filed these petitions under Sections 5 , 6, 8 and 11 read with Section 12 of the Arbitration and Conciliation Act, 1996, with following prayer:

i. To pass an appropriate order for appointment of independent and impartial sole arbitrator as per the petitioner requests under the provisions of section 11(6) sub-section (a) and (c) of the arbitration and conciliation (amendment) act, 2019 to adjudicate the disputes/claims between the parties for the work of “Development of Mahatma Phule Garden at Tilakwadi in Belagavi City” agreement dated 12.7.2019.

ii. To pass an appropriate order as per the clause 4.1 of SCC and also (amendment) act, 2019 by appointing independent and impartial sole arbitrator under section 11(8) of the act for settlement of disputes/claims between the parties as per the special conditions of contract.

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iii. Pass such other orders as the Hon’ble court deems fit in the interest of justice and equity.

iv. Make any further scheme for dealing with the matter as contemplated under section 11 of the arbitration and conciliation (amendment) act 2019.

2. Learned counsel for the petitioner submitted that the petitioner M/S Pradeep Construction Company, represented by its Partner Sri.Jagannath Shetty, Engineers & Contractors, Admn. Ofice: #4, Vrindavan Apratment, Opp: BUB College, Vidyanagar, Hubli-580021 was entrusted with executing the work of Construction of Footpath and Cycle Track (NMV) from APMC Junction to Azamnagar 'Y' Junction and Azamnagar to INMARK Showroom (Pkg-3) in Belagavi, vide agreements dated 12.07.2019 and 30.7.2019.

3. The plaintiff is a Class I contractor having experience in Civil Contract Works in the State of Karnataka and successfully completed number of Government works in PWD department, National Highways, and Urban Development Department and Karnataka Power Corporation Ltd etc., to the best satisfaction of the concerned departments. The address for service of notices, summons etc., as shown in the above cause title and that of his Advocate Sri.P.Harischandra Reddy and Sri.C.S. Shettar Advocates, 'Tapomay' #12, Lake City, 4th Right from Sai Temple, Kelageri Road, Dharwad-580 008.

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4. The Respondent No.1 is The Managing Director, Belagavi Smart City Ltd, Belagavi, Respondent No.2-the Secretary, Urban Development Department, Government of Karnataka, Vikas Soudha, Bangalore- 560 001 and respondent No.3-the Executive Engineer, Belagavi Smart City Ltd, Belagavi. The addresses for service of all notices on the respondents are as shown in the above cause title.

5. The first Respondent herein awarded the above work to the petitioner on tender basis at a cost of Rs.6.07 Crore being the lowest tender. The work order was issued 30.07.2019. The agreement was entered between the parties dated 30.07.2019 (Annexure-P1). The work to be completed by 29.07.2020, stipulating the period of performance being 12 months. During the execution of the work the respondents have committed delays, defaults and breach of contract while executing the work by the petitioner. The first respondent having accepted the delays on their part extended the period 4 times from 29.7.2020 to 30.6.2022 without penalty, and the petitioner has completed the project within the extended date to the best satisfaction of the Respondents.

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6. Further it is submits that the petitioner has suffered huge losses due to delays, defaults and breach of contract committed by the respondents during the execution of the work. As the delays were attributable to the respondents, claiming compensation as per Clause 38 of the conditions of the contract of the tender document (Annexure P.2), the petitioner submitted the final bill on 30.03.2023 for a sum of Rs.6,49,61,853/- along with the interest @18% per annum from the date of due to the date of payment. But the first respondent has not settled the final accounts along with pending claims as per clause 47.1 of GCC as per the request of the petitioner dated 12.09.2023. He