2023 Supreme(Online)(Del) 25737
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IN THE HIGH COURT OF DELHI AT NEW DELHI
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ARB.P. 1431/2022
M/S SHREE ASSOCIATES
..... Petitioner
Through:
Mr. S.W. Haider and Ms. Pooja Dua,
Advs.
versus
UNION OF INDIA
..... Respondent
Through:
Mr. Rishabh Sahu, CGSC
CORAM:
HON'BLE MR. JUSTICE SACHIN DATTA
SYED WASIF HAIDER
ORDER
% 20.01.2023
1. The present petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeks constitution of an Arbitral Tribunal to adjudicate the inter se disputes between the parties, which have arisen in the context of an agreement dated 08.02.2016 for the work pertaining to “Rebuilding of bridge no.1218 DN (2x3.05 mtr) span at Km 1482/10-11 between BEK-NGG station, bridge no. 1215 DN (2x3.05 mtr) span at km 1480/25-27 between BED-NGG on MB-SRE section under ADEN/Najibabad and bridge no. 1271 DN (1x6.05 mtr) span at km 1557/28-30 between RK-IQB on MB-SRE section, bridge no. 18 between IKK-JWP, bridge no. 39 (lx1.22 mtr) span at km 29/05-06, bridge no. 40 (lxl.22 mtr) span at km 29/07-08, bridge no. 75 (Ixl.22 mtr) span at km 40/02-03, bridge no. 76 (1xl.22 mtr) span at km 40/04-05 & bridge no. 38 (2xl.52 mtr) span at km 29/03-04 on LRJ-DDN section under ADEN/Roorkee" which was awarded to the petitioner vide acceptance letter dated 19.10.2015 for Rs. 2,28,17,875/- (Rupees Two Crore Twenty Eight Lac Seventeen Thousand Eight Hundred and Seventy Five Only). The stipulated date of completion of work was 06 months therefrom i.e., the work awarded was to be completed by 18.04.2016.
2. The Arbitration Clause contained in the agreement between the parties is in the following terms:
- “ 64.(1) Demand For Arbitration:
- 64.(1) (i) In the event of any dispute or difference between the parties hereto as to the construction or operation of this contract, or the respective rights and liabilities of the parties on any matter in question, dispute or difference on any account or as to the withholding by the Railway of any certificate to which the contractor may claim to be entitled to, or if the Railway fails to make a decision within 120 days, then and in any such case, but except in any of the "excepted matters" referred to in Clause 63 of these Conditions, the contractor, after 120 days but within 180 days of his presenting his final claim on disputed matters shall demand in writing that the dispute or difference be referred to arbitration.
- 64.(1) (ii) The demand for arbitration shall specify the matters which are in question, or subject of the dispute or difference as also the amount of claim item-wise. Only such dispute(s)or difference(s) in respect of which the demand has been made, together with counter claims or set off, given by the Railway, shall be referred to arbitration and other matters shall not be included in the reference.
- 64.(1) (iii) (a) The Arbitration proceedings shall be assumed to have commenced from the day, a written and valid demand for arbitration is received by the Railway.
- (b) The claimant shall submit his claim stating the facts supporting the claims alongwith all the relevant documents and the relief or remedy sought against each claim within a period of 30 days from the date of appointment of the Arbitral Tribunal.
- (c) The Railway shall submit its defence statement and counter claim(s), if any, within a period of 60 days of receipt of copy of claims from Tribunal thereafter, unless otherwise extension has been granted by Tribunal.
- (d) Place of Arbitration : The place of arbitration would be within the geographical limits of the Division of the Railway where the cause of action ·arose or the Headquarters of the concerned Railway or any other place with the written consent of both the parties.
- 64.(1) (iv) No new claim shall be added during proceedings by either party. However, a party may amend or supplement the original claim or defence thereof during the course of arbitration proceedings subject to acceptance by Tribunal having due regard to the delay in making it.
- 64.(1) (v) If the contractor(s) does/do not prefer his/their specific and final claims in writing, within a period of 90 days of receiving the intimation from the Railways that the final bill is ready for payment, he/they will be deemed to have waived his/thei