An arbitration agreement is separate and only superseded by clear provisions stating so; courts favor referring disputes to arbitration when in doubt regarding the validity of such agreements.

JUDGMENT

Anup Jairam Bhambhani J. (Oral)--By way of the present petition under section 11 of the Arbitration & Conciliation Act 1996 (`A&C Act 'for short), the petitioner seeks appointment of an arbitrator to adjudicate upon the disputes that are stated to have arisen with the respondent from Agreement dated 05.01.2005.

2. Notice on this petition was issued on 08.04.2021; whereupon the respondent has filed its reply dated 29.07.2022.

3. Mr. Anand Mishra, learned counsel for the petitioner has drawn the attention of this court to clause 72.2 of Agreement dated 05.01.2005 which comprises the arbitration agreement; and contemplates reference of disputes between the parties to arbitration in accordance with the A&C Act.

4. Counsel has also invited attention to a separate territorial jurisdiction provision contained in clause 72.7 of Agreement dated 05.01.2005, which subjects the disputes between the parties to the jurisdiction of the courts of law at New Delhi.

5. As per the record, the petitioner invoked arbitration vidi Notice dated 01.10.2019; to which the respondent sent no reply.

6. However, in its reply dated 29.07.2022 filed to the petition, the only legal objection taken by the respondent is that the Special Conditions of Contract ('SCCs' for short) supersede the General Conditions of Contract ('GCCs' for short) insofar as the arbitration clause is concerned. To support this submission, Mr. Sandeep Garg, learned counsel for the respondent has called upon the court to consider the provision in clause 31.0 of the SCCs which relates to settlement of disputes, to say that the said clause supersedes clause 72.0 of the GCCs which would imply supersession of clause 72.2, which (latter) provision is cited by the petitioner to comprise the arbitration agreement between the parties.

7. Attention has also been drawn to clause 1.0 of the SCCs which reads as follows:

"1.0 The conditions of the Contract shall be General Conditions of Contract (herein after called as the General Conditions) as modified and added to by the following Special Conditions of Contract which shall be read and construed with the General Conditions as if they were incorporated therewith.

Insofar as any of the conditions of Special Conditions of Contract conflict or be inconsistent with any of the General Conditions, the special conditions shall prevail."

(emphasis supplied)

8. Counsel for the respondent has further invited attention to the dispute settlement provision contained in clause 31.0 of the SCCs, which reads as under:

"31.0 SETTLEMENT OF DISPUTES

(This clause supersedes the clause 72.0' of General Conditions of Contract).

All disputes or differences of any kind whatsoever that may arise between the Employer/Engineer and the Contractor in connection with or arising out of the contract or subject matter thereof or the execution of works, whether during the progress of works or after their completion, whether before or after determination of contract shall be referred by the Contractor to the Employer in writing for resolving the same through mutual discussions, negotiations, deliberation etc. associating representatives from both the sides and concerted efforts shall be made for reaching amicable settlement of disputes or differences."

(emphasis supplied)

9. It is the submission of learned counsel for the respondent, that by reason of the above provisions, the entire clause 72.0 which comprises the disputes settlement clause, including clause 72.2 which the petitioner is citing as the arbitration