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SACHIN DATTA
Y. K. Goyal – Appellant
Versus
Delhi Urban Shelter Improvement Board – Respondent
JUDGMENT
Sachin Datta, J.
Factual Background
1. The present petition has been preferred under Section 11(6) of the Arbitration and Conciliation Act, 1996 (the `A&C Act') seeking appointment of an independent sole arbitrator to adjudicate the dispute between the parties.
2. The disputes between the parties have arisen under an Agreement dated 23.02.2017 for `Construction of 100 seater JSC/toilets at JJ Cluster G.T. Road, Lal Bagh, Delhi'. The petitioner was awarded the said work vide letter no. WI/6031/117/PG/EC-7/2016-17 D-253 dated 23.02.2017, issued by respondent no.3/Executive Engineer, pursuant to an e-tender.
3. The relevant arbitration clause is contained in the applicable General Conditions of Contract. Clause 25 thereof reads as follows:
"Clause 25: Settlement of Disputes & Arbitration
Except where otherwise provided in the contract all questions and disputes relating to the meaning of the specification, design, drawings and instructions herein before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or things whatsoever, in any way arising out of or these condition or otherwise concerning the works
The court confirmed the existence of an arbitration agreement and mandated the appointment of a sole arbitrator to adjudicate contract disputes, highlighting the necessity of complying with contractu....
The Court emphasized the principle of 'when in doubt, do refer' and left the issues of limitation and compliance with the procedure for DRC under Clause 25 for consideration by the arbitrator.
The pre-arbitration procedures under the arbitration clause are not always mandatory, and the court may refer disputes to arbitration if the requisites of arbitrability and notice under the Arbitrati....
Arbitration - Appointment of Arbitrator - Court is not required to examine any other contentious issues regarding the disputes between the parties at the stage of referring the parties to arbitration....
The court ruled that claims regarding limitation and the validity of invoking arbitration must be determined by the Arbitral Tribunal, reaffirming the applicability of Article 137 of the Limitation A....
An arbitration agreement remains valid and enforceable despite procedural limitations on arbitrator appointment, ensuring disputes are addressed effectively.
As per Section 11 (13) of the Act now arbitration is required to be decided within 30 days.
The court affirmed that failure to adhere to the dispute resolution procedure allows a party to invoke arbitration directly, emphasizing the importance of timely actions in contractual disputes.
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