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IN THE HIGH COURT OF DELHI
Suresh Kumar Kait, J.
M.P. Tyagi Engineers and Contractors - Appellant
Versus
Union of India - Respondent
Arb.P. 1053 of 2021
Decided On : 07-12-2021




The court confirmed that consent of both parties for the appointment of an arbitrator fulfills the requirements under Section 11(6) of the Arbitration and Conciliation Act, enabling dispute resolution.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11(6) - Petition for appointment of a sole arbitrator under Arbitration Clause 70 of IAFW 2249 - Contractor claims engagement by the Union of India for construction work leading to disputes requiring arbitration. (Paras 1, 6, 10)

(B) Consent of parties - Parties consenting to the appointment of a specific individual as sole arbitrator fulfills requirement stipulated under the Joint Condition of the contract. (Paras 8, 11)

Facts of the case:
The petitioner, a contractor, engaged by the Union of India, filed a petition for appointing a sole arbitrator to settle disputes arising from contract work with a monetary value of Rs.3,02,26,089.80/- related to construction activities. Respondents acknowledged the need for arbitration and nominated an arbitrator.

Findings of Court:
The court allowed the petition and appointed Mr. R.P. Singhal as the sole arbitrator to resolve the disputes in accordance with the Arbitration Clause of the contract.

Issues: The primary issue was whether to appoint a sole arbitrator as the appointed parties could not resolve their disputes.

Ratio Decidendi: The court held that under Section 11 of the Arbitration and Conciliation Act, the consent of the parties in nominating an arbitrator fulfills the requirement for appointment, thereby facilitating resolution of disputes.

Result: Petition allowed.

Table of Content
1. petition for appointment of arbitrator. (Para 1 , 2 , 3 , 4)
2. disputes arose after completion of work. (Para 5 , 6)
3. parties consent to appoint arbitrator. (Para 7 , 8)
4. arbitrator appointed by consent. (Para 9 , 10 , 11)
5. petition disposed of; order for arbitrator. (Para 12 , 13)

JUDGMENT (Oral)

1. The present petition has been filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator in terms of Arbitration Clause 70 of IAFW 2249 forming the part of contract entered between the parties.

2. Petitioner herein is a contractor, who claims to have been engaged by the respondents, respondent No.1-Union of India and respondent No.2,3 & 4 subordinates of respondent No.1, on several occasions for carrying out various constructions and other activities.

3. The basis of present petition rests upon Arbitration Clause 70 of IAFW 2249 forming the part of contract entered between the Parties, which was entered into pertaining to a work order bearing No. CEWAC/GUR/26/20 17-18 to the tune of sum of Rs.3,02,26,089.80/- pursuant to acceptance letter dated 21.09.2017 against a tender for the work CA NO. CEWAC/GUR/T-52/2017-lS:ADDN ALTN TO SMQ OF SAFED NAGAR AREA PH I AT VSV GURGAON published on 27.07.2017.

4. It is averred in the present petition that as per the Work Order issued on 05.10.2017 by the respondent No.4, date of handing over of the site for the execution of the contract work was 16.10.2017 and date of completion of the contract work was 15.01.2019.

5. Learned counsel for petitioner submits that the petitioner on 26.10.2017, issued letter seeking approval of samples of various items from the Respondent/GE (I)(AF)MES GURGAON-122001 and vide letter dated 29.10.2017, submitted names of four supervisors along with tokens for personnel, for execution of the work at site. Furthermore, sample approval for certain more items was also requested on the same date vide letter dated 29.10.2017. According to petitioner, the work was successfully completed at site in all three phases. The completion letter for the work being completed at site was issued vide letter dated 01.10.2018, 03.03.2019 & 12.03.2020. Thereafter, certain disputes arose between the parties.

6. According to petitioner, notice dated 05.09.2020 was sent to the respondents seeking appointment of Arbitrator under condition 70 of IAFW 2249 for adjudication of disputes under the contract Agreement, which was replied to vide letter dated 07.09.2021 seeking further action. However, respondents failed to appoint Sole Arbitrator as per the Arbitration Clause. Therefore, the present petition has been filed.

7. Learned counsel for petitioner submits that Sole Arbitrator may be appointed to adjudicate the dispute between the parties.

8. Learned counsel appearing on behalf of respondents submits that he has no objection if sole Arbitrator is appointed for adjudication of dispute between the parties, however, has brought attention of this Court to a Notice dated 30.11.2021 issued by the respondent to petitioner herein, nominating names of three Arbitrators, as suggested by the department.

9. During the course of hearing, counsel appearing both the sides have consented upon the name of Mr. R.P. Singhal, ADG being appointed as Arbitrator in this case.

10. Accordingly, the present petition is allowed and Mr. R.P. Singhal, ADG (Arbitration) (as suggested by respondents) is appointed sole Arbitrator to adjudicate the dispute between the parties in terms of Arbitration Clause 70 of IAFW 2249 forming the part of contract entered between the parties.

11. Since the aforenamed Arbitrator has been appointed with the consent of the parties, therefore, compliance under Section 12 of Arbitration and Conciliation Act, 1996 is dispensed with.

12. The present petition stands disposed of accordingly.

13. A copy of this order be sent to the learned Arbitrator for information.

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