JUDGMENT

1. The present petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (the ‘A&C Act’) has been filed seeking appointment of a Sole Arbitrator to adjudicate the disputes between the parties.

2. The disputes between the parties have arisen in a tender process initiated by the respondents for “Manufacturing and Supply of Metal liner for wider sleeper”. The bid submitted by the petitioner was accepted by the respondents vide communication/letter of counter offer dated 07.08.2019. It was mentioned in the said communication that upon acceptance of the counter offer, the said letter of counter offer will automatically become a formal letter of acceptance, which shall constitute a binding and concluded contract between the parties. The petitioner vide communication dated

12.08.2019 accepted the said counter offer.

3. Thereafter, the petitioner as per contractual provisions has submitted two FDRs amounting to Rs.27,44,600/- towards Security Deposit to the respondents. Subsequently, the respondents have issued two formal purchase orders on the petitioner.

4. It is averred in the petition that although the petitioner has completed the supplies and has even submitted “No Claim Certificate”, the respondents have not released and/or returned the FDRs.

5. The applicable ‘Indian Railways Standard Conditions’ of the Contract contains an arbitration agreement between the parties in the following terms:

“2900 Settlement of Disputes

2901 Conciliation of disputes All disputes and differences of any kind whatsoever arising out of or in connection with the contract, whether during the currency of the contract or after its completion and whether before or after the determination of the contract, shall be referred by any of the parties to the concerned "Chief Materials Manager (CMM) " or "Divisional Railway Manager" or "Executive Director" through "Notice of Dispute". CMM or Divisional Railway Manager or Executive Director shall, within 30 days after receipt of "Notice of Dispute", notify the name of sole conciliator to the parties, The Conciliator shall assist the parties to reach an amicable settlement in an independent and impartial manner within the terms of contract.

If the parties reach agreement on settlement of the dispute, they shall draw up a written settlement agreement duly signed by parties and conciliator. When the parties sign the settlement agreement, it shall be final and binding on the parties.

The parties shall not initiate, during the conciliation proceedings, any arbitral or judicial proceedings in respect of dispute that is the subject matter of the conciliation proceedings.

The conciliation proceedings shall be terminated:

1) By the signing of the settlement agreement, on the date of agreement: or

2) By written declaration of the conciliator, after consultation with the parties, to the effect that further efforts at conciliation are no longer justified, on the date of declaration: or

3) By a written declaration of any party to the conciliator to the effect that the conciliation proceedings are terminated, on the date of declaration:

2902 Matters Finally Determined by the Railway: All disputes and differences of any kind whatsoever arising out of or in connection with the contract, whether during the currency of the contract or after its completion and whether before or after the determination of the contract, shall be referred by the contractor to the General Manager (for the purpose of para 2900 the term General Manager shall imply Additional General Managers of Zonal Railways , General Managers for Production Units, Additional Member (Railway Stores), Member of the Railway Board, Head of the Organisation in case of contracts entered into by other organizations under the Ministry of Railways) and the General manager shall, within 120 days after receipt of the representation, make and notify decisions on all matters referred to by the Contractor in writing. Provided that matters for which provision has been made i