Table of Content
1. overview of arbitration application under section 11(6) and 14. (Para 1 , 2)
2. arguments regarding arbitrator bias, waiver of section 12(5), and procedural fairness. (Para 3 , 4 , 5 , 6 , 7 , 8)
3. judicial appointment of an independent arbitrator based on party consensus. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15)

Order on Board

1. This is an application under Section 11(6) read with Section 14 of the Arbitration and Conciliation Act, 1996 for termination of mandate and substitution of Arbitrator.

2. The facts, in brief is that M/s CG Engineering Company, is a Sole Proprietorship firm owned by the applicant. A Letter of Acceptance (for short, the LoA) No. Electrical/OTP-22-23-26/01119610078592 dated 06.06.2023 was issued in favour of the applicant for the work of "Annual Overhauling & Servicing Contract for Diesel Generator of capacities 5 KVA to 500 KVA of different makes installed over various stations of Bilaspur Division inclusive of replacement of minor spares & repairing of AMF panel for a period of two years". EMD: Rs. 71,600/- deposited vide IREPS Ref. ID PE403518320649. Balance SD @6% up to 5% of the contract value. Performance Guarantee Rs.1,77,196.98/- deposited: 1,77,198/- FDR No. EM/TDR/Q/035774 dated 07.07.2023 for a period of 2 tears l.e. 07.07.2025. On 20/09/2023 Agreement No. SECR/BSP/Elect/2023/0026 was entered between the parties for Awarded quantities & Rates

i) Monthly servicing & overhauling of Diesel Generator sets of capacities 5 KVA to 500 KVA of different makes installed over various stations of Bilaspur Division inclusive of replacement of minor spares. 1056 Nos @930.04 total value 9,82,118.02.

ii) Six Monthly servicing & overhauling of Diesel Generator sets of capacities 100 KVA to 500 KVA of different makes installed over various stations of Bilaspur Division inclusive of replacement of spares. 64 Nos @9297.48 total value 5,95,038.95.

iii) Six Monthly servicing & overhauling of Diesel Generator sets of capacities 30 KVA to 93 KVA of different makes installed over various stations of Bilaspur Division inclusive of replacement of spares. 56 Nos @6793.35 total value 3,90,507.73.

iv) Six Monthly servicing & overhauling of Diesel Generator sets of capacities up to 20 KVA of different makes installed over various stations of Bilaspur Division inclusive of replacement of spares. 56 Nos @4649.22 total value 2,60,356.39.

v) Painting of DG sets with primer, thinner and metallic paints for DG. 32 Nos @1269.45 total value 40,622.44.

The dispute involved between the parties is arbitral in nature as per agreement and as per clause 64 of GCC 2022 provides provision for demand of arbitration and further appointment of an independent arbitrator is inevitable in terms of contract. The intention of the applicant is to refer his dispute to the arbitrator. The respondent issued 7 days notice on 27/09/2024 followed by 48 hours notice issued on 05/10/2024, thereafter termination order dated 08/10/2024 issued against the applicant. A detail representation was, submitted by the applicant to GM/SECR (i) regarding illegal termination of contract, (ii) Non-payment of bill for the work completed (iii) Non-payment for the work done under NS item. (iv) Non-Payment of spares replaced. In light of above representation the competent authority ie Dy. General Manager(G) vide order DGM/SECR/ARB/PCEE/CGE/854/27 dated 31/01/2025 appointed sole arbitrator Shri Shashank Koshta, Senior Divisional Electrical, Engineer (TRS), SEC, Railway, Bilaspur to adjudicate the claims and disputes arising out the Agreement SECR/BSP/Elect/2023/0026. The applicant appeared before the learned sole arbitrator and submitted Statement of Claim, thereafter respondent has submitted statement of defence to which the applicant had submitted rejoinder to it.

3. According to Mr. Ahluwalia, learned counsel for the applicant, the present petition is filed seeking termination of mandate and substitution of in-house sole arbitrator on the gr

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