The main legal principle established is the enforceability of arbitration clauses in contracts and the court's authority to appoint a Sole Arbitrator to resolve disputes in accordance with the Arbitration and Conciliation Act, 1996.

ORDER

Chandra Dhari Singh, J. (Oral)

1. The present petition has been filed on behalf of the petitioner under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of a Sole Arbitrator for adjudication of disputes arising between the parties qua the Tender Agreement.

2. Learned counsel appearing on behalf of the petitioner submitted that the petitioner is a private limited company registered under the provisions of the Companies Act, 1956 having its registered office at 3588, Main Bazar, Old Subzi Mandi, Delhi-110007. It is further submitted that the petitioner is involved in the business of organising events, offering a variety of services i.e., all kinds of printing, and providing of printing materials, printing of banners flex and other things.

3. It is submitted on behalf petitioner that in order to choose a vendor to issue show-cause notices, suspension orders, return of suspended licences, issuance of enforcement notices and challans in the transport department of the government of the NCT of Delhi in 2018, the respondent no. 1 floated a tender bearing tender ID DC/OPS/TPT/2018/02.

4. It is submitted on behalf of the petitioner that the petitioner submitted its bids in the aforementioned tender and was thereby declared a successful bidder. Consequently, the petitioner was awarded said job vide Job Order no. DC/OPS/TPT/2014/3152-55 dated 31st July, 2018. It is further submitted that the project was completed effectively, and the petitioner raised and filed invoices totalling to Rs. 8,99,987/-.

5. It has been submitted on behalf of the petitioner that the petitioner did not receive payment for the aforementioned outstanding invoices despite numerous verbal requests, visits and written reminders. It is further submitted that the respondents have not sent any communication regarding the payments to the petitioner towards the aforementioned bills. In addition to the EMD amount of Rs. 60,000/- and security amount of Rs. 1,00,000/- the aforementioned sum of Rs. 8,99,987/- is still outstanding with the office of respondents.

6. It has been submitted on behalf of the petitioner that the petitioner has made numerous attempts to resolve the issue of pending payment through mutual discussions with the officers involved from the respondents department. It is further submitted that since all the efforts to resolve the dispute amicably have failed, thus, the petitioner was constrained to invoke the arbitration clause i.e., Condition 11 of the Tender Agreement vide notice dated 21st October, 2021. The said arbitration clause, i.e., Condition 11 of the Tender Agreement is reproduced hereunder:

"All disputes or differences arising out of or in connection with the Contract shall be settled by bilateral discussions. Any dispute, disagreement or question arising out of or relating to the Contract or relating to construction or performance, which cannot be settled amicably, may be resolved through arbitration. In the event of any dispute or difference arising out of or in any way relating to or concerning these presents or effects of these presents, the same shall be referred to the sole arbitration of a person to be appointed by the Commissioner (Transport), Government of NCT of Delhi. Any litigation arising out of this contract shall be filed only in the Courts at Delhi, India."

7. Learned counsel appearing for the respondents vehemently opposed the averments made in the instant petition, however, fairly conceded that the dispute arising between the parties is arbitral in nature, thus, has no objection if this Court appoints a Sole Arbitrator in order to adjudicate the disputes between the parties.

8. Heard the learned counsel for the parties and perused the record.

9. As agreed on behalf of the parties, it is evident that the parties intend for this Court to refer the disputes to arbitration by appointing a Sole Arbitrator. In view of the request made by the parties, to resolve the disputes arising under the