2017 Supreme(All) 42
ALLAHABAD HIGH COURT
BEFORE : ASHWANI KUMAR MISHRA, J.
M/s. RAM SHAKTI CONSTRUCTION ....Applicant
Versus
AGRA DEVELOPMENT AUTHORITY AND ANOTHER ....Opposite Parties
(Arbitration and Conciliation Application No. 54 of 2015, decided on 11th January, 2017)
Counsel :
S.N. Tiwari, Krishna Mohan Sahai and S.K. Tiwari for the Applicant; Rohan Gupta and Suresh C. Dwivedi for the Opposite Parties.
Headnote:Arbitration and Conciliation Act, 1996—Section 11—Appointment—Arbitrator—Scope—Held, whether a claim is barred by limitation or not need not be gone into by judge designate while exercising jurisdiction under Section 11—However it is imperative that a satisfaction is arrived at by Court that a live claim exists which could be arbitrated upon—In instant case contract was performed in 2007—Whether work was completed or not was an issue which arose in 2007 itself—Further a third agency was employed for completing contract work—No payment was released to applicant after 2007—Successive writ petitions filed were also dismissed in 2011-12—Applicant by its very conduct allowed dispute to die down—Such delayed claim cannot be revived—Particularly when neither measurements could be ascertained nor issue could be resolved by arbitration—Plea that applicant had continuously been representing matter cannot be treated satisfactory explanation for such long latches—Court declined to appoint arbitrator. [Para 11]
Result; Application Rejected.
Hon’ble Ashwani Kumar Mishra, J.—The applicant has invoked jurisdiction of this Court under Section 11(6) of the Arbitration and Conciliation Act, 1996, for appointment of an arbitrator. It is claimed that an agreement containing arbitration clause was entered into between the parties on 26.4.2006 for construction and maintenance of a road under the scheme of respondent Development Authority. This agreement has been annexed alongwith this application as Annexure-1. The work was to be performed within a period of one year i.e. by April, 2007. The applicant claims that it proceeded with the contract and completed the work, in terms of the agreement. It is claimed that as against the total project cost of Rs. 54 lacs, the applicant was paid a sum of Rs. 46 lacs by the year 2007, whereafter no further amount was paid.
2. It transpires that a dispute arose towards the end of the year 2007 as to whether the work was properly performed or not? Materials have been placed on record in the counter-affidavit to demonstrate that work performed was unsatisfactory and proceedings to blacklist the applicant were also initiated on 18.7.2007. It further appears from the record that towards end of the year 2007 or beginning of the year 2008, the same work was assigned to some third party and the work was got completed. The applicant has however brought on record a document alongwith its rejoinder-affidavit to claim that contract work was completed by the applicant to the satisfaction of the authorities. The prayer in this application is opposed on the ground that the claim sought to be adjudicated upon is a dead/stale claim and is not liable to be referred to arbitrator. It is in this context that facts of the present case would have to be analyzed.
3. This Court finds that there is an issue as to whether work awarded was satisfactorily performed by the applicant or not? It is not in dispute that the contract work was required to be completed within a year. It is also not disputed that the alleged contract work was undertaken as per applicant before end of the year 2007. The applicant asserts that it had received the amount pursuant to the contract till the year 2007 and no amount was paid thereafter. Since contract work was completed as per applicant and no payment was made after 2007, a cause had arisen to the applicant. A period of nearly four years expired, even thereafter without any action on part of the applicant. This is sought to be explained by contending that applicant repeatedly approached the authorities for payment of amount, but the same was not released. The facts do not end here. The applicant being dissatisfied with the denial of payment, ultimately approached High Court by filing Writ Petition No. 61972 of 2011, for a direction to the respondents to release the amount payable towards final payment alongwith 24% interest w.e.f. July, 2006 till the date of filing of the writ petition. A further prayer was made to direct the respondents to decide applicant’s representation. This petition was dismissed by this Court vide following order dated 1.11.2011 :
“Heard Mr.S.N.Tiwari, learned counsel appearing for petitioner and Mr. Praveen Kumar Shukla, Advocate holding brief of Mr.M.C.Chaturvedi, learned counsel appearing for respondent Nos. 2, 3 and 4 and learned Standing Counsel for respondent No. 1.
Petitioner’s main grievance before this Court is with regard to certain money claim simplicitor arising out of contractual obligations.
According to us, contractual obligations between the parties cannot be adjudicated in writ proceeding in the manner as proposed, particularly when the amount is not admitted. Therefore, it is not a fit case for interference by this Court. Hence, the writ petition cannot be admitted and is, therefore, dismissed, however, without imposing any cost.
In any event, passing of this order will in no way affect the right of the petitioner, if any, to approach the appropriate Court or forum in accordance w