IN THE HIGH COURT OF RAJASTHAN AT JAIPUR BENCH
ASHOK KUMAR GAUR, J.
M/s Sanjeev Brothers - Applicant
Versus
Union of India - Respondent
S.B. Arbitration Application No. 28 of 2022
Decided on : 05-05-2023
| Table of Content |
|---|
| 1. arbitration application process (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8) |
| 2. disputes around 'no claim certificate' (Para 9 , 10 , 11 , 12 , 13 , 14 , 15) |
| 3. respondent's challenges to arbitration (Para 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24) |
| 4. court's reasoned evaluation (Para 25 , 26 , 27 , 28 , 29) |
| 5. application of precedents in arbitration (Para 30 , 31 , 32 , 33 , 34) |
| 6. appointment of arbitrator (Para 35 , 36) |
ORDER :
Ashok Kumar Gaur, J. - The instant arbitration application has been filed under Section 11 (5) read with section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of an arbitrator for settlement of the disputes and differences between the parties.
2. Learned counsel for the applicant Mr.Jatin Agarwal submitted that the respondent - Union of India had floated a tender for construction of Platform, FOB, PF, shelter, drain, RRI Building and other Ancillary work including Dismantling of MG Track, Laying of Board Gauge track, spreading of Ballast, tamping, transportation of P.Way material in connection with Jaipur yard remodelling and Jaipur Sikar, GC.
3. Learned counsel submitted that since the applicant was a successful bidder, as such his bid was accepted and the applicant was awarded work vide letter of acceptance dated 08.09.2016.
4. Learned counsel submitted that the work awarded to the applicant was required to be executed within a period of 12 months from the date of letter of acceptance. Learned counsel submitted that an agreement between the parties was executed on 11.11.2016.
5. Learned counsel submitted that the applicant after execution of the agreement started performing his part and on account of deficiencies on the part of the respondent, the work was delayed for some time and due intimation was sent by different letters to the respondent.
6. Learned counsel for the applicant submitted that the applicant also requested the Authorities in respect of his claims and dues, however, the respondent in spite of receiving letters and requests, did not perform their part.
7. Learned counsel for the applicant submitted that the claim raised by the applicant was denied by the respondents while communicating the order dated 13.02.2020.
8. Learned counsel submitted that after receipt of letter dated 13.02.2020, the applicant sent a notice for making payment and appointment of an arbitrator.
9. Learned counsel submitted that the respondent - Railway replied back by issuing letter dated 16.08.2021 and informed the applicant that since he has given 'No Claim Certificate' and his claims being time barred and the same is an "excepted matter" in terms of Clause 43(1), 43(2), 64(1)(v) and 63 of the Indian Railways Standard General Conditions of Contract (hereinafter read as 'General Conditions of Contract') and as per Arbitration and Conciliation Act, 1996 (hereinafter read as the 'Act of 1996'), the claim for appointment of Arbitral Tribunal was denied.
10. Learned counsel for the applicant submitted that after receipt of letter dated 16.08.2021, the applicant was left with no other choice except to approach this Court for appointment of an arbitrator.
11. Learned counsel for the applicant submitted that Clause 63 of the agreement signed between the parties, provides for settlement of disputes and Clause 64(1) is for demand of arbitration.
12. Learned counsel submitted that the respondent has wrongly rejected the claim of the applicant on both counts; (i) excepted matters and; (ii) on the ground of delay.
13. Learned counsel for the applicant also submitted that as far as the law relating to excepted matters/contract not arbitable is concerned, recently the Apex Court in the case of M/s.Park Infrastructure Limited v. Union of India and Ors. (Special Leave to Appeal (C) No.30972/2018 decided on 11.04.2023, has laid down the law that only on account of 'No Claim Certificate' issued in favour of a contracting party, the application under Section 11 (6) of the Act of 1996 cannot be dismissed.
14. Le
Union of India v. Parmar Construction Company reported in (2019) 15 SCC 682.
Vidya Drolia and Ors. v. Durga Trading Corporation reported in (2021) 2 SCC 1
Mayavati Trading Private Limited v. Pradyuat Deb Burman reported in (2019) 8 SCC 714
2020 Rules which came into force from the date of their publication in the Official Gazette, i.e. 12.02.2020, cannot be given retrospective effect. The intention of Government of India to make the 20....
Scope of judicial review by court while deciding an application under Sections 8 or 11 of Arbitration Act, post amendments by Act 3 of 2016 (with retrospective effect from 23-10-2015) and even post a....
The main legal point established in the judgment is that the limitation for filing an application under Section 11 of the Arbitration Act arises upon the failure to make the appointment of the arbitr....
Arbitration requests must be filed within three years of the cause of action; failure to act in time bars subsequent petitions.
Failure to appoint an arbitrator within the stipulated time results in the loss of the right to make the appointment. Appointment of an arbitrator by an ineligible person is void ab initio.
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