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IN THE HIGH COURT OF TRIPURA AT AGARTALA
APARESH KUMAR SINGH, CJ.
Arun Kumar Dey S/o Late Biraj Mohan Dey - Appellant
Versus
The Oil and Natural Gas Corporation Limited - Respondent
Arb. Pet. No. 03 of 2024
Decided On : 05-09-2024
| Table of Content |
|---|
| 1. initial presentation of case facts and claims. (Para 1 , 2) |
| 2. disputes claimed by the petitioner and respondent's defense. (Para 3 , 4 , 5) |
| 3. court's detailed examination of arbitration clauses and epf relevance. (Para 6 , 8 , 10 , 11 , 12) |
| 4. court's ruling on non-arbitrability of specific claims. (Para 9 , 13 , 14) |
| 5. final dismissal of the petition. (Para 15) |
ORDER :
1. Heard Mr. A. Sengupta, learned counsel appearing for the petitioner and Mr. Jyotirmoy Das, learned counsel appearing for the respondent-ONGC.
2. In terms of Clause 25 of the agreement dated 26.06.2018 in relation to execution of the work "Renovation of Dispensary building at Badharghat Complex, ONGC Tripura Asset, Agartala" petitioner has invoked Section 11 (6) of the Arbitration and Conciliation Act, 1996 as amended for appointment of an independent and impartial arbitrator by this Court in the present application. He had approached the competent authority vide letter dated 18.10.2023 (Annexure-4) to which the respondents have replied through letter dated 04.01.2024 (Annexure-5). He invoked the Arbitration clause vide Annexure-6 dated 10.04.2024. The same was replied by the respondents on 13.05.2024 (Annexure-7). The claims raised by the petitioner are furnished under paragraph-5(x) and are extracted hereunder:
| S. No. | Particulars | Amount |
| 1. | Whether the claimant-contractor is entitled to get refund of the amount which was levied and recovered as liquidated damage from the bill of the claimant-contractor. | Rs.3,71,587/- |
| 2. | Whether the claimant-contractor is entitled to get refund of the amount which was deducted by the ONGC from the bill of the claimant contractor as water charges. | Rs.33,554/- |
| 3. | Whether the claimant is entitled to get refund of the amount which was withheld from his bill as short payment of EPF by the claimant-contractor. | Rs.1,00,000/- |
| 4. | Whether the claimant-contractor is entitled to get interest @12% per annum on the demanded sum of Rs.5,05,141/- w.e.f. his demand notice dated 18.10.2023 till the date of actual payment. | As would be decided by Arbitral Tribunal |
| 5. | Whether the claimant-contractor is entitled to get cost of Arbitration proceeding and incidental thereto and if so to what extent. | As would be decided by the Arbitral Tribunal |
| TOTAL | Rs.5,05,141/- |
3. Learned counsel for the petitioner submits that the respondents do not have right to deduct EPF contribution from the pending bills of the petitioner. This claim is, therefore, in the arena of dispute and arbitrable apart from the other claims of refund of certain amounts recovered as liquidated damages from the bill of the claimant contractor and towards water charges, i.e. Rs.3,71,587/- and Rs.33,554/-. Over and above these claims, petitioner is also entitled to interest over the admissible amount. Reference is made to Clause 25 and specifically Clause 25.1.12 which stipulates that if the parties are not able to resolve the dispute through OEC or do not opt for conciliation through OEC, the party may invoke arbitration clause as provided in the contract. He submitted that the respondents are unnecessarily trying to wriggle out of the arbitration clause by excluding the claim of Rs.1,00,000/- allegedly deducted by them against EPF dues of the contractor. The respondents are unnecessarily trying to harp upon Clause 25.2 by excluding the claim relating to EPF dues to bring the disputes or claims of a value less than Rs.5,00,000/-. The above stand of the respondents itself shows that it is a dispute between the parties and can very well be referred for arbitration. Therefore, this dispute is arbitrable and fit for independent adjudication by an impartial arbitrator appointed by this Court.
4. Respondents have filed a counter affidavit. A specific stand has been taken at paragraph-5 to the effect that the first two disputes mentioned at Sl. No.(i) and (ii) of the claim raised by the petitioner are admitted as deductions made by the respondents from the bill of the contractor which may be considere
Disputes over statutory compliance, including EPF contributions, are non-arbitrable, and claims valued below Rs. 5 lakhs cannot be referred to arbitration as per the contract's arbitration clause.
The court held that the validity of claims and the arbitrability of related disputes must be referred to arbitration, rejecting the respondent's claims of non-compliance with contractual protocols li....
The main legal point established in the judgment is that all disputes capable of resolution by arbitration should be referred to the Arbitral Tribunal, and the scope of examination by the Court exerc....
The claims were notified within the stipulated period and submitted along with the final bill in accordance with Clause 6.6.3.0 of the GCC, making the disputes arbitrable under Clause 9.1.0.0.
The court upheld the arbitral award, confirming limitations and contractual adherence dictated the validity of claims and findings concerning 'accord and satisfaction' precluded further disputes.
The main legal principle established is that the Court should not reject an application for appointment of an arbitrator at the threshold unless the claim is manifestly, ex-facie and hopelessly time-....
The court emphasized the non-arbitrable nature of the dispute under the Industrial Disputes Act and the importance of adhering to the limitation period for invoking arbitration, as well as the impact....
The court emphasized that an arbitrator's jurisdiction is confined to claims explicitly referred to in the arbitration clause; claims arising from separate contracts cannot be entertained.
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