Disputes arising from a construction contract are arbitrable, and failure to follow conciliation procedures does not bar the appointment of an arbitrator.

ORDER :

1. The parties and lis involved in all the three applications are common and therefore, they were being heard together and disposed of by way of this common order.

2. Heard Sri M. Sridhar, learned counsel for the Applicants, Sri V.T. Kalyan, learned counsel appearing for respondent and Sri B.Mohan, learned counsel appearing for 2 nd respondent/formal party.

3. These applications are filed under Section 11(5 and 6) of the Arbitration and Conciliation Act, 1996 (for short, ‘the Act’) to appoint an Arbitrator to adjudicate the disputes between the parties.

CONTENTIONS OF THE APPLICANT:

4. The applicant is a private limited company and engaged in the business of construction and real estate activities. 1 st respondent has issued e-tender notice dated 05.11.2019 for proposed construction of quarters and the applicant having participated in the said tender, stood as a successful bidder.

5. The details of the tender notice, nature of work, costs of work, date of letter of acceptance are mentioned in the tabular form:-

6. It is the contention of the applicant that a contract agreement was entered between the applicant and the 1 st respondent on 09.02.2021 for execution of aforesaid works. Vide letter dated 02.02.2021, it has informed to 1 st respondent that the period of contract work was already ended. Even then, 1 st respondent neither entered into agreement nor supplied drawings. The applicant has received structural designs of drawings from M/s. Arch view Designs Private Limited and vide letter dated 01.03.2021, it had submitted the same to 1 st respondent for their approval. As there was no response from the 1 st respondent, the applicant again addressed a letter dated 31.03.2021 requesting 1 st respondent to approve the drawings and also informed that the applicant had already started the miscellaneous works.

7. The applicant addressed letters dated 19.05.2021, 22.06.2021, 16.07.2021, 30.08.2021 to 1 st respondent but there was no response.

8. On the other hand, vide letter 23.10.2021, 1 st respondent issued notice of termination of contract dated 09.02.2021 to the applicant stating that applicant could not complete the work within the stipulated date of completion/mutually extended date of completion, that the applicant had failed to apply for further extension of period of completion on valid and reasonable grounds as acceptable, that 1 st respondent would claim damages under Clause-62 of General Conditions of Contract (GCC) in addition to forfeiting the Earnest Money Deposit (EMD) and encashing the Performance Guarantee (PG) submitted by the applicant. Therefore, applicant invoked arbitration Clause 64(3) of the GCC for adjudication of disputes between the applicant and respondent. The applicant filed an application vide O.P.No.13 of 2021 under Section 9 of the Act, and learned I Additional Chief Judge, City Civil Court, Secunderabad granted status quo which is subsisting. Since there are disputes between the applicant and 1 st respondent which are arbitrble in natu