IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
PUSHPENDRA SINGH BHATI, J.
M/s. Dharma Ram Contractor, Sazedari Registered Firm - Petitioner
Versus
State Of Rajasthan and Ors. – Respondents
S.B. Arbitration Application No. 10 Of 2022
Decided On : 31-07-2023
Arbitration and Conciliation Act, 1996 - Sections 10 & 11 - Arbitration application - Seeks appointment of an arbitrator - Held, Learned counsel for respondents however, opposes submissions made on behalf of applicant on count of the fact that matter pertains to accepted category, and as per same, Chief Engineer is required to send a panel containing name of three officers, not below rank of Superintending Engineer of Government of Rajasthan, and then petitioner shall be required select one of them as a sole arbitrator - After hearing learned counsel for parties, Court finds that limited issue in question falls within ambit of Section 11 of Arbitration and Conciliation Act, 1996 - Court is also conscious of fact that any further issue(s) can be raised by either of the parties before arbitrator, who in turn, shall deal with same, strictly in accordance with law - Arbitration application
JUDGMENT :
1. The instant arbitration application has been filed under Sections 10 & 11 of the Arbitration and Conciliation Act, 1996 claiming the following reliefs :
2. Learned counsel for the applicant submits that the parties are bound by Arbitration Clause i.e. Clause 23 of the Conditions of Contract (Agreement for Civil Construction Works – General Rules and Directions for the Guidance of Contractors), which is reproduced as hereunder:-
For the purpose of appointing the sole arbitrator referred to above, the Chief Engineer will on receipt of notice and prescribed fee from the contractors send a panel of 3 names not below the rank of Superintending Engineer of the Rajasthan Government and who shall all be presently unconnected with the contract. The contractor shall on receipt of the names as aforesaid select any one of the persons named, to be appointed as a sole arbitrator and communicate his name to the Chief Engineer. The Chief Engineer shall thereupon appoint the said person as the sole arbitrator without delay. The arbitrator shall given reasons for award.
Subject as aforesaid the provisions of the Arbitration Act, 1940, or any statutory modification or reenactment thereof and the rules made thereunder and for the time being in force shall apply to the arbitration proceedings under this clause.”
3. Learned counsel for the applicant seeks appointment of an arbitrator by this Court while invoking Section 11 of the Arbitration and Conciliation Act, 1996.
4. Learned counsel for the applicant further submitted that the applicant sent a notice dated 27.12.2021 to the respondents for appointment of arbitrator as per the Clause 23 of the Agreement, as reproduced hereinabove, but despite that, the respondents did not take any action in this regard.
5. Learned counsel for the respondents however, opposes the submissions made on behalf of the applicant on count of the fact that the matter pertains to accepted category, and as per the same, the Chief Engineer is required to send a panel containing name of three officers, not below the rank of Superintending Engineer of the Government of Rajasthan, and then the petitioner shall be required select one of them as a sole arbitrator.
6. Learned counsel for the respondents further submits that the contractual dispute, owing to the default by the contractor, is required to be resolved by the concerned authority itself.
7. Learned counsel for the respondents also opposes the appointment of the arbitrator on count of the fact that the applicant has caused deliberate delay and has not been able to resolve the dispute with the department, despite several opportunities.
8. However, after making such submissions,
The court's authority to appoint an arbitrator in cases where the parties are unable to agree, in accordance with the law laid down by the Supreme Court and the provisions of the Arbitration & Concil....
The main legal point established in the judgment is that due to the amendment in the Arbitration and Conciliation Act, 1996, it is no longer permissible for a party or its official to act as an Arbit....
The appointment of the arbitrator must be in accordance with the arbitration agreement and must satisfy the provisions of the arbitration act.
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