1. A construction contract was allotted in favour of the petitioner. An agreement came to be executed subsequently being Agreement No. AG-43 of 01/2006. Subsequently, a supplementary agreement dated 13th of September, 2007 is also stated to have been executed.

2. The petitioner states that the entire work was completed to the satisfaction of the department, which however, did not take over the possession of the executed work. It is stated that even when the work stood completed in 2007 final bill was not prepared till August, 2009. Finally, it is stated that an amount of Rs.19 lac approximately was deducted from the final bill illegally. It is against this withholding of the amount along with other issues, which gave cause of action to the petitioner to seek reference of the disputes to the arbitrator in terms of the arbitration clause. This was done by virtue of a registered letter dated 7-4-2010, invoking clause 27 of the tender document for the resolution of the disputes between the parties.

3. Clause 27.1 containing the arbitration clause is reproduced hereunder:

"All disputes between the contractor and the Department the Relief Commissioner (Mig.) shall act as an arbitrator whose decision shall be final and binding upon both the parties, provision of the J&K arbitration act with latest amendments thereof shall be applicable."

4. The petitioner has placed on record the receipt issued by the Indian Postal authorities regarding the service of the registered A/D containing the notice, seeking reference of disputes to the arbitrator.

5. Respondents have denied their liability to make any payment to the petitioner and have stated that they are ready to appoint the named arbitrator in the agreement, which right they never forfeited.

6. Looking to the fact that disputes have arisen between the parties and in view of the fact that the respondents failed to refer the disputes in terms of the arbitration clause within the time prescribed, it is deemed proper to refer the disputes to an independent arbitrator.

7. Accordingly, Sh. A.S. Wazir, Chief Engineer (retd.) is appointed as an arbitrator, who shall enter upon the reference and adjudicate upon the disputes between the parties within the prescribed statutory period. The parties shall be at liberty to file detailed claims and counter claims before the learned arbitrator. The arbitrator shall render his award within the prescribed statutory period. The fee of the arbitrator is fixed @ Rs. 15,000/~ per sitting, to be shared equally by the parties. Registrar Judicial shall intimate the learned arbitrator accordingly.

8. Disposed of accordingly.

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