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SACHIN DATTA
Rani Constructions Pvt. Ltd. – Appellant
Versus
Union of India – Respondent
JUDGMENT
1. The present petition under Section 11 of the Arbitration and Conciliation Act, 1996 ('A&C Act, 1996') seeks constitution of an arbitral tribunal to adjudicate the disputes between the parties.
2. The disputes between the parties have arisen in the context of an EPC agreement dated 16.11.2017 executed between the parties in respect of the work of "Rehabilitation and Upgradation to 2-Lane with Paved Shoulder Configuration from existing Km. 122.00 (Dharasu Bend) to Km. 147.230 (Silkyara Bend) (Design Chainage 0.00 to 24.30) of NH-94 in the State of Uttarakhand".
3. The bids were invited for the said project on behalf of the Ministry of Road Transport and Highway (MORT&H) on 31.03.2017. After valuation of the bids, the authority accepted the bid of the petitioner and issued a letter of acceptance dated 07.09.2017 awarding the contract to the petitioner at a contract price of Rs.149.67 Crores. Subsequent thereto, the aforesaid EPC Agreement was executed between the parties.
4. The disputes between the parties have arisen on various counts, interalia, the alleged failure on the part of the respondent to pay the legitimate dues of the petitioner against the executed quantities of
The main legal point established in the judgment is that the appointment of an independent sole arbitrator is necessary, and the refusal of the petitioner to participate in conciliation proceedings d....
Under Section 11(6) of the Act seeking appointment of sole Arbitrator are not maintainable and are hereby dismissed, while directing the parties to nominate one Arbitrator each from the panel of SARO....
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....
Parties must adhere to arbitration agreements, and judicial intervention is permitted only if arbitration procedures are exhausted; allegations of bias against SAROD were not substantiated.
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....
An arbitration agreement remains valid and enforceable despite procedural limitations on arbitrator appointment, ensuring disputes are addressed effectively.
The main legal point established in the judgment is that the petitioner's failure to exhaust the mandatory dispute resolution procedure as per the contract rendered the petition premature and non-mai....
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