The court upheld the right to arbitration as per the terms of the contract, emphasizing the importance of adherence to contractual dispute resolution mechanisms.

JUDGMENT

C. Hari Shankar, J. - Despite repeated opportunity, no reply is on record, filed by the respondent.

2. The right to place the reply on record, accordingly stands forfeited.

3. This is a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of arbitrators, to arbitrate on the dispute/disputes between the parties.

4. The dispute arises out of a contract, dated 23nd November, 2013, between the petitioner and the respondent for construction of two lane road over bridge in lieu of level crossing No. 507 at Km. 1542/26-28 near Dausni Railway station along with other allied works on Laksar-Saharanpur-Tender Opened on dated-06.03.2013 .

5. The contract being with the Ministry of Northern Railways, Clause 64 of the General Conditions of Contract governing contracts with the Railways would apply, which provides for arbitration as the mode of resolution of disputes and reads as under:

"64.(1) Demand For Arbitration:

64(1)(i)- In the event of any dispute or difference between the parties hereto as to the construction or operation of this contract, or the respective rights and liabilities of the parties on any matter in question, dispute or difference on. any account or as to the withholding by the Railway of any certificate to which the contractor may claim to be entitled to, or if the Railway fails to make a decision within 120 days, then and in any such case, but except in any of the "excepted matters" referred to in Clause 63 of these Conditions, the contractor, after 120 days but within 180 days of his presenting his final claim on disputed matters shall demand in writing that the dispute or difference be referred to arbitration.

64(1)(ii)- The demand for arbitration shall specify the matters which are in question, or subject of the dispute or difference as also the amount of claim item-wise. Only such dispute(s) or difference(s) in respect of which the demand has been made, together with counter claims or set off, given by the Railway, shall be referred to arbitration and other matters shall not be included in the reference.

64(1)(iii)- (a) The Arbitration proceedings shall be assumed to have commenced from the day, a written and valid demand for arbitration is received by the Railway.

(b) The claimant shall submit his claim stating the facts supporting the claims along with all the relevant documents and the relief or remedy sought against each claim within a period of 30 days from the date of appointment of the Arbitral Tribunal.

(c) The Railway shall submit its defence statement and counter claim(s), if any, within a period of 60 days of receipt of copy of claims from Tribunal thereafter, unless otherwise extension has been granted by Tribunal.

(d) Place of Arbitration: The place of arbitration would be within the geographical limits of the Division of the Railway where the cause of action arose or the Headquarters of the concerned Railway or any other place with the written consent of both the parties.

64(1)(iv)- No new claim shall be added during proceedings by either party. However, a party may amend or supplement the original claim or defence thereof during the course of arbitration proceedings subject to acceptance by Tribunal having due regard to the delay in making it.

64(1)(v)- If the contractor(s) does/do not prefer his/their specific and final claims in writing, within a period of 90 days of receiving the intimation from the Railways that the final bill is ready for payment, he/they will be deemed to have waived his/their claim(s) and the Railway shall be discharged and released of all liabilities under the contractor in respect of these claims.

64.(2) Obligation During Pendency of Arbitration:

Work under the contract shall, unless otherwise directed by the Engineer, continue during the arbitration proceedings, and no payment due or payable by the Railway shall be withheld on account of such proceedings, provided, however, it shall be open for Arbitral Tribunal to consider and decide