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IN THE HIGH COURT OF DELHI
Anil Kumar, J.
Svapn Construction - Appellant
Versus
IDPL Employees Co-operative Group Housing Society Ltd. - Respondent
AA No. 255 of 1997
Decided On : 20-12-2005




JUDGMENT

Anil Kumar, J.--This order will dispose of petitioner's petition under Section 11 (6) of the Arbitration and Conciliation Act, 1996 for appointment of an arbitrator.

2. Brief facts to comprehend the disputes between the parties are that respondent No. 1 which is a Cooperative Group Housing Society invited tenders for construction of 22 flats. The tender documents were to be collected from the office of the architect of the respondent No. 1 M/s. Aakriti Consultants India (Pvt.) Ltd., AC-I/179 C, Shalimar Bagh, Delhi. The tenders were to be received upto 3.30 p.m. on 4 0.6.1993 at the address of C-2/112, DDA Flats, Lawrence Road, Delhi-110035 and were to be opened at 4 p.m. on the same date.

3. A letter dated 21.5.1993 was written to the petitioner intimating that the petitioner had been selected for issue of tender documents consequent to which tender was collected by the petitioner from the office of the Architect at M/s. Aakriti Consultants India (Pvt.) Ltd., AC-1/179C, Shalimar Bagh, Delhi and tender was submitted as directed by the respondent No. 1 which was opened at 4 p.m. on 10.6.1993 at C-2/112, DDA flats, Lawrence Road, Delhi-110035. After negotiation, the work was awarded to the petitioner. The negotiations also took place at C-2/12, DDA Flats, Lawrence Road, Delhi-11003 5 which is apparent from the communication dated 9.7.1995 which was sent to the petitioner.

4. The special conditions agreed between the parties had an arbitration clause which is reproduced for reference:

    "19. ARBITRATION

    Condition 54 of the General Conditions of contract shall be superseded by the following provisions for 'Arbitration'.

    Except where otherwise provided for in the contract all questions and disputes relating to the meaning of the specifications, designs, drawings and instructions hereinbefore mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter of thing whatsoever in any way arising out of or relating to the contract, design, drawings, specifications, estimates, instructions, orders or these conditions or otherwise concerning the works, or the executing or failure to execute the same whether arising during the progress of the work or after the completion or abandonment thereof shall be referred to the sole arbitration of the person appointed by the employer There will be no objection if the arbitrator so appointed is a employee, an that he had to deal with the matters to which the contract relates and that in the course of his duties as such he had expressed views on all or any of the matters in dispute or difference. The arbitrator to whom the matter is originally referred being transferred or vacating his or being unable to act for any reason, the employer shall appoint another person to act as arbitrator in accordance with the terms of the contract. Such person shall be entitled to proceed with reference from the stage at which it was left by his predecessor. It is also a term of this contract that no person other than a person appointed by the employer as aforesaid should act as arbitrator and if for any reason, that is not possible, the matter is not to be referred to arbitration at all. In cases where the amount of the claim in dispute is Rs. 50,000/- (Rs. Fifty thousand) and above, the arbitrator shall give reasons for the award.

    Subject as aforesaid the provision of the Arbitration Act, 1940, or any statutory modification or re-enactment thereof and the rules made thereunder and for the time being in force shall apply to the arbitration proceeding under this clause.

    It is a term of the Contract that the party invoking arbitration shall specify the dispute or disputes to be referred to arbitration under the clause together with the amount or amounts claimed in respect of each such dispute. It is also a term of the Contract that if the Contractor(s) do/does not make any demand for arbitration in respect of any claim(s) in writing within 90 (

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