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SANJEEV NARULA
Oriental Structural Engineers Pvt Ltd – Appellant
Versus
Seven Hills Project Private Limited – Respondent
JUDGMENT
Sanjeev Narula, J. - The present petitions under Section 11(6) of the Arbitration and Conciliation Act, 1996, seek appointment of a Sole Arbitrator.
PETITIONER'S CONTENTIONS
2. The case of the Petitioner is that the Respondent has been working as a sub-contractor in respect of the following Work Orders
A. Work Order No. OSE/NSBP/SC-W0/2015-16111 dated 23rd July, 2015 towards special repair works towards Nagpur Betul Road project. (Giving rise to ARB.P. 644/2020).
B. Work Order No. OSE/C/NBP-F/SC-W0/007 dated 19th September, 2015 towards embankment and subgrade construction for Nagpur Bypass road project. (Giving rise to ARB.P. 658/2020).
3. It was agreed between the parties that the bills raised under the Work Orders shall be verified and certified at the time of completion of Works and submission of the Final Bill, for which, the Respondent had to submit measurements and necessary records. According to the Petitioner, the Respondent has failed to perform its obligations under the afore-noted Work Orders. It had to submit the royalty challans as contemplated under Clauses 8.09 (Taxes, Duties, Royalty etc.) and 10.09 of the Work Order for finalization of the Final Bill. In abse
The court ruled that the existence of a bona fide dispute necessitates arbitration, and a unilateral appointment mechanism for an arbitrator violated established legal standards.
. In the absence of any demand with specific reference to the work order, it is not possible to determine what is the disputed amount with regard to the work order
The main legal point established is that the fulfillment of agreed procedures, such as conciliation as a condition precedent, is necessary before invoking the arbitration clause. The Court emphasized....
The main legal point established is that a party to a contract cannot absolve its liabilities and must comply with dispute resolution clauses, and claims must be within the period of limitation.
Unilateral appointment of an arbitrator is impermissible; parties must appoint an arbitrator jointly or seek court appointment to ensure unbiased dispute resolution.
The court's decision emphasized the appointment of a sole Arbitrator to adjudicate disputes under the Arbitration and Conciliation Act, 1996.
Court under Section 11(6) appoints arbitrator upon undisputed invocation of arbitration clause in contract, permitting respondents to raise limitation and merits objections before tribunal.
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