IN THE HIGH COURT OF JHARKHAND AT RANCHI
SUJIT NARAYAN PRASAD, J.
Delhi Integrated Multi Modal Transit System Limited (DIMTS) – Appellant
Versus
Jharkhand Urban Infrastructure Development Company Limited (JUIDCO) through its Director – Respondent
Arbitration Application No. 12, 14 to 20 of 2020
Decided on : 17-02-2022
Arbitration & Conciliation Act, 1996 – Sections 11 (6) (C), 12 and 29-A - Dispute Resolution - Terms of agreement - Appointment of arbitrator - If applications were filed by one or other party before respondent, second party, is it not incumbent upon respondent to take decision even by taking adverse decision - Applicant -Delhi Integrated Multi Modal Transit System Limited (DIMTS) is an expert body for transit systems and infrastructure facilities and its implementation across country. Pursuant to Notice Inviting Tender, it participated in tender process and was declared successful - Held, such action cannot be appreciated, reason being that if any application is being filed by applicant-petitioner for redressal of grievance, particularly, in given facts of case, claim which contains a condition of amicable settlement or settlement through negotiation and/or mediation before resorting to arbitration clause, but having not responded to such letter respondent cannot be allowed to take plea that petitioner applicant has not taken recourse of dispute resolution as provided under Clauses by way of ‘amicable settlement’ and ‘negotiation and/or mediation - In order to avoid conflict in finding by different arbitrator, if appointed agreement-wise, this Court view that appointment of sole arbitrator will be just and proper order for resolution of the dispute - Arbitration Applications are disposed of
JUDGMENT :
These matters have been taken upthrough video conferencing.
2. With consent of learned counsel for the parties, all the Arbitration Applications have been heard together and are being disposed of by this common order.
3. All these applications have been filed under Section 11 (6) (C) of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as “the Act, 1996”) whereby and whereunder the prayer for appointment of arbitrator has been made in view of condition stipulated under Clause 21.3 of the Agreement in question.
4. The brief facts of the case, as per the pleadings made in the applications, which are required to be enumerated for proper adjudication of lis, read as under: The applicant -Delhi Integrated Multi Modal Transit System Limited (DIMTS) is an expert body providing concepts, planning, designs, modules, architecture and other solutions for transit systems and infrastructure facilities and its implementation across the country. Pursuant to the Notice Inviting Tender, it participated in the tender process and was declared successful.
In Arbitration Application No.12 of 2020, the applicant-consultant company was selected technically and financially on Quality-cum-Cost Based Selection Method for the project “Selection of Consultant for Preparation of Detail Project Report (DPR) for construction of Theme Park at Chiraundi under Ranchi Nagar Nigam.
In Arbitration Application No.14 of 2020, the applicant was selected for preparation of DPR and PMC service for Re-development/Renovation of Bus Stand at Mango (Jamshedpur) in Jharkhand.
In Arbitration Application No.15 of 2020, the applicant was selected for preparation of DPR and PMC service for Re-development/Renovation of Bus Stand at Dumka in Jharkhand.
In Arbitration Application No.16 of 2020, the applicant was selected as consultant for preparation of DPR and PMC service for Strengthening, Development and Beautification of Arterial Sub-Arterial and Collector streets in Dumka, Jharkhand.
In Arbitration Application No.17 of 2020, the applicant was selected for preparation of DPR and PMC service for Re-development/Renovation of Bus Stand under Gumla Nagar Panchayat in Jharkhand.
In Arbitration Application No.18 of 2020, the applicant was selected for preparation of DPR and PMC service for Re-development/Renovation of Bus Stand at Phusro Nagar Parishad in Jharkhand.
In Arbitration Application No.19 of 2020, the applicant was selected for preparation of DPR and PMC service for Re-development/Renovation of Bus Stand at Godda Nagar Panchayat in Jharkhand.
In Arbitration Application No. 20 of 2020, the applicant was selected for preparation of DPR and PMC service to execute Integrated Sewerage and Storm Water Drainage project at Madhuban (Parasnath) under Giridih district.
After being declared successful in tender process, the parties entered into agreement and work order was issued. Thereafter, the applicant-petitioner started to work as per agreement.
It is the case of the applicant-petitioner that as per terms of agreement and as also demand of respondent some additional work was also done and submitted detailed DPR and raised invoices against it, but neither the detailed DPR was approved nor payment was released.
It is further case of the applicant-petitioner that in the meanwhile the project cost was also enhanced. Applicant-petitioner in Arbitration Application Nos. 14 to 19 has submitted that to the utter surprise, contrarily the respondent imposed liquidated damages on approved consultancy fee on applicant-petitioner. Though clarification to that letter was sent to respondent stating that penalty imposed upon the applicant-petitioner is inappropriate, as such the same be withdrawn but it was replied that the liquidated damages is not arbitrary and is as per terms of agreement.
It is further case of the applicant-petitioner that repeatedly applicant made requests for payment but it did not evoke any response, therefore, a dispute arose. It has further been averred tha
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