High Court Of Delhi
ACRO ENGINIRING ENTERPRISES - Appellant
Versus
DELHI DEVELOPMENT AUTHORITY - Respondent
Suit 1916A of 1985
Decided On : 01/19/1987
Arbitration Act - Construction Contracts - The court directed the defendant to file the original arbitration agreements, appoint an arbitrator, and refer the claims as set out in the petition to the arbitrator. The defendant was also permitted to file counterclaims, and the plaintiff was allowed to file further claims after the defendant's counterclaims.
Fact of the Case:
The plaintiff, a private limited company, entered into four construction contracts with the Delhi Development Authority (D.D.A.) and its Engineering member. Disputes arose between the parties, and the plaintiff sought to refer the disputes for settlement to an arbitrator.
Finding of the Court:
The court directed the defendant to file the original arbitration agreements, appoint an arbitrator, and refer the claims as set out in the petition to the arbitrator. The defendant was also permitted to file counterclaims, and the plaintiff was allowed to file further claims after the defendant's counterclaims. The suit was disposed of.
Issues: Dispute resolution through arbitration, filing of arbitration agreements, appointment of arbitrator, permission to file counterclaims, and further claims.
Ratio Decidendi: The court's decision was influenced by the existence of arbitration clauses in the contracts, the admission of claims and counterclaims by the defendant, and the need for a fair resolution of disputes between the parties.
Final Decision: The court directed the defendant to file the original arbitration agreements, appoint an arbitrator, and referred the claims as set out in the petition to the arbitrator. The defendant was also permitted to file counterclaims, and the plaintiff was allowed to file further claims after the defendant's counterclaims. The suit was disposed of.
( 1 ) THIS is a petition under section 20 of the Arbitration Act filed by M/s. Aero Engineering Enterprises against the Delhi Development Authority (For Short d. D. A. ), and its Engineering member. This petition was registered as a suit and notice issued to the defendants to show cause why the arbitration agreements be not filed. Although many opportunities were granted to the defendants to file their written statement they have not been able to do so.
( 2 ) THE plaintiff which is a private limited company carry on the work of contractors entered into the following four agreements with the D. D. A.
"1. Construction, of 468 Houses (L1g) at Bodella Vikaspuri, Block KG-II. Agreement No. 2/hdix/dda/79-80. Date of start: 8-9-79 Date of completion: 7-9-1980. 2. Construction of 237 M1g Quarters at Pocket KGI at Bodella. Agreement No. 7/hd1x/dda/80-81. Date of Start: 17-10-80 Date of completion: 16-10-81. 3. C/o Govt. Higher Sec. School for 960 students at Bodella Vikaspuri Block b . Agreement No. Agmt. No. 48/ee/dd1v/81-82. Date of Start: 147-81 Date of completion: 13-10-82. 4. C/o 84 M1g Dus at Bodella. Agreement No. 145/ee/ddiv/82-83 Date of start: 30-1. 82 Date of completion: 29-1-83. "
( 3 ) IT is averred that the disputes arising out of the above-said contracts have to be referred for settlement to an Arbitrator to be appointed by the Engineering Member of the D. D. A, It is further averred that the disputes have arisen between the parties; details of the claim of the plaintiff are set out in paragraph 7 of the plaint. Under the first contract, the plaintiff has 15 claims; under the second contract the plaintiff has 10 claims; under the third agreement the plaintiff is seeking direction that 13 claims set out in that paragraph be referred and under the fourth agreement the plaintiff has set out 14 claims. The plaintiff has further reserved its right to submit further claims.
( 4 ) AS I have noticed, written statement has not been filed. At the time of arguments, however, Mr. Talwar, appearing for the D. D. A. , admitted (1) that there is an arbitration clause ifl all the contracts. That clause lias been reproduced by the plaintiff in paragraph 5 of the pc iinon and (2) that apart from the claims to be forwarded by the plaintiff, the defendant has also a number of counterclaims arising out of each of the above agreements. In view of the fact that the plaintiff has reserved its right to submit further claims learned counsel for the plaintiff fairly conceded that the defendant permitted to file its counterclaims before the Arbitrator. I have separately recorded the statement of the counsel for the plaintiff to-day.
( 5 ) AS the existence of the arbitration clause is being admitted and further, the claims and counter claims have a^hen between the parties 1 direct the defendant Authority to file the original arbitration agreements within three weeks from to-day. I further direct the defendant to appoint an arbitrator within three weeks of the filing of the arbitration agreements and to refer to him the claims as are set out in the plaint/petition. In view of the statement of the learned counsel for the plaintiff I permit the defendant to file its counter-claims, if any, before the said arbitrator. In view of the fact that the extent of the counter-claims is not yet known I permit the plaintiff to file further claims, if any, after filing of the counter-claims by the defendant. I notice from the record that one of the applications filed by the defendant was allowed subject to payment of Rs. five hundred as costs. So far that amount has not been paid. I make it clear that permission granted to the defendant to file its counter claims before the Arbitrator is subject to the payment of the above said amount of costs. A copy of this order may be handed over to the learned counsel for the D. D. A. to be conveyed to the Engineer member who is to appoint an Arbitrator.
( 6 ) SUIT stands disposed of.
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