ORDER :

The instant petition is preferred under Section 14[1][b] and Section 15[1] [a] read with Section 15[2] of the Arbitration & Conciliation Act, 1996 [‘the 1996 Act’, for short] seeking appointment of a substitute Arbitrator.

2. Heard Mr. A. Biswas, learned counsel for the petitioner and Mr. H. Gupta, learned Central Government Counsel for both the respondents.

3. The facts, in brief, leading to the filing of the present petition can be narrated, in brief, as follows :

3.1. The respondent North-East Frontier Railway [N.F. Railway] published a Tender Notice vide Tender no. CE/CON/S-L/MB/2006/02 for a contract work :-‘Design & construction of foundation, sub-structure and super-structure of major bridge No. III/69 [Span 1X24.4 m] at KM 105/826.00 & bridge No. III/79 [Span 1 X 24.4 m] at KM 109/940.000 on pile foundations, between New Haflong – Jatinga Lumpur stations, on permanent diversion including earthwork in filling/cutting behind abutments for making formation at approaches on either side of bridge approaches and all other ancillary works in connection with Lumding – Silchar Gauge Conversion Project’ [‘the Contract-Work’, for short]. The petitioner participated in the competitive bidding process initiated vide Tender no. CE/CON/S-L/MB/2006/02 by submitting his original offer on 10.03.2006. Subsequently, the matter was negotiated and the petitioner submitted negotiated offers on 15.05.2006 & 12.06.2006. By a Letter of Acceptance bearing no. W/362/CON/S-L/MB/2006/02 dated 22.06.2006, the Tendering Authority in the N.F. Railway for and on behalf of the President of India accepted the negotiated offer of the petitioner at a total cost of Rs. 5,37,94,300/-, as per the enclosed schedule of rates & quantities therein. As per the Letter of Acceptance, the petitioner was authorized to commence the Contract-Work on the strength of the Letter of Acceptance to ensure completion of the Contract-Work within a period of 18 [eighteen] months as per the condition of the Tender. By the Letter of Acceptance, the petitioner was asked to complete formalities like deposit of initial security deposit, submission of the proposed programme of work, etc. It was mentioned that the Letter of Acceptance shall be legal and enforceable contract between the petitioner and the respondent N.F. Railway. Thereafter, the contract agreement being Contract-Agreement no. CON/S-L/989 dated 02.09.2006 [‘the Contract-Agreement’, for short] was executed between the President of India acting through the Railway Administration on the one part and the petitioner as the Contractor on the other part for execution of the Contract-Work. The petitioner was, thus, obligated to perform the Contract-Work as per the conditions set forth in the General Conditions of Contract and the specification of the Northeast Frontier Railway, 1998 edition and the Special conditions and Special Specifications, if any, and in conformity with drawings thereto annexed. The Contract-Agreement mentioned the total approx. value of the Contract-Work as Rs. 5,37,94,300/-. After the Letter of Acceptance and execution of the Contract-Agreement, the petitioner started executing the Contract-Work.

3.2. It was the case of the petitioner that during the execution of the Contract-Work, it had faced numerous obstacles which, according to the petitioner, prevented the petitioner from executing and completing the Contract-Work within the stipulated contract period. It had been projected that the obstacles faced by the petitioner during the execution of the Contract-Work were not attributable to any latches on the part of the petitioner but those were due to latches attributable on the part of the respondent N.F. Railway or due to serious law and order problem which was, at that period of time, prevailing in and around the work-site. The contention was that the respondent N.F. Railway authorities despite being made aware of the obstacles faced by the petitioner in executing the Contract-Work by various letters