Judges : K.S.RADHAKRISHNAN,N.M.KRISHNAN
National Thermal Power Corporation Ltd - Appellant
Versus
Raghul Constructions Pvt.Ltd. - Respondent
Case No : WP (C). Nos.28254 of 2004 (R), 28256 of 2004 (R), 282257 of 2004 (R), 28233 of 2004 (R)
Decided On : 12/20/2004
Advocates Appeared :
For the Petitioner: K. Anand (A.201), Latha Krishnan, Advocates. For the Respondent: Jacob Varghese, Advocate.
Arbitration and Conciliation Act, 1996 -Section .11(6) - National Thermal Power Corporation Ltd have come up with these Writ Petitions aggrieved by the order passed by the learned Single Judge - under S. 11(6) of the Arbitration and Conciliation Act, 1966 appointing a former Chief Justice of this Court as the arbitrator in respect of an arbitration dispute -Held, Arbitration agreement itself contract and parties enter into solemn agreement agreeing on a procedure for appointing an arbitrator mere fact that a party has failed to follow that agreed procedure does not mean that the Chief Justice or the designated person shall not take any measure to give effect to the agreed procedure - Allow the Writ Petitions.
Radhakrishnan, J.
National Thermal Power Corporation Limited, in short “the NTPC”, have come up with these writ petitions aggrieved by the order passed by the learned single judge under Section 11(6) of the Arbitration and Conciliation Act, 1996 appointing a former Chief Justice of this court as the arbitrator in respect of an arbitration dispute.
2. The NTPC had awarded the contract to the respondent and an agreement was entered into on agreement, both the petitioner and respondent are bound by the special conditions of the contract and general conditions of the contract. Condition No.56 is the arbitration agreement between the parties, which is extracted below for easy reference.
“Except where otherwise provided for in the Contract all questions and disputes relating to the meaning of the specifications, decisions drawing and instructions herein before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever in any way arising out of or relating to the contract, designs drawings specifications, estimates, instructions, orders or these conditions or otherwise concerning the works; or the execution or failure to execute the same whether arising during the 0progress of the work or after the completion or abandonment thereof shall be referred to the sole arbitration of the General Manager of National Thermal Power Corporation Limited and if the General Manager is unable or unwilling to act; to the sole arbitration of some other person appointed by the Chairman and Managing Director, National Thermal Power Corporation Ltd. willing to act as such arbitrator. There will be no objection if the arbitrator so appointed is an employee of National Thermal Power Corporation Ltd. and 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 office or being unable to act for any reason as aforesaid at the time of such transfer vacation of office or inability to act. Chairman and Managing Director, National Thermal Power Corporation Ltd. shall appoint another person to act as arbitrator in accordance with the terms of the Contract. It is also a term of his contract that no person other than a person appointed by C.M.D. N.T.P.C. Ltd. 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.”
Dispute arose between the parties. Consequently respondent as per letter dated 21.01.2004 requested the petitioner to appoint an arbitrator invoking the arbitration clause. In the said letter dated 21.01.2004 respondent made the following request.
“Under the above circumstances we hereby inform you and demand of you to appoint an Arbitrator as per Condition 56 of GCC for Civil Works to resolve/adjudicate the disputes and differences detailed herein above as per arbitration and conciliation Act 1996 failing which we will be constrained to take appropriate legal steps for the redressal of our grievances of which this is to be treated as the requisite notice without further reference, which please take note of. Both the parties have agreed to adopt new enactment if any under condition 56 of GCC (Arbitration) for the purpose of conducting arbitration proceedings. As new enactment vis Arbitration and Conciliation Act 1996 came into force on 25.1.1996 the proceeding in connection with arbitration may be directed to the conducted as per the said new enactment for all purpose.”
According to the NTPC, by letter dated 21.02.2004 they had informed the respondent that steps are being taken to appoint arbitrator as per the latter’s request. Another letter dated 12.2.2004 was also sent by the respondent to the Honourable Minister, which reads as follows:
“Under the circumstanc
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