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GAHC010176132023

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THE GAUHATI HIGH COURT

(HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)

Case No. : Arb.P./23/2023

M/S G. T. C. INDIA

REPRESENTED BY ITS PARTNER SHRI SAURAV GHOSH,

A PARTNERSHIP FIRM REGISTERED UNDER THE INDIAN PARTNERSHIP

ACT,

HAVING ITS PRINCIPLE PLACE OF BUSINESS AT 2ND FLOOR,

CHOUDHURY MINI MARKET,

BIDHAN ROAD, SILIGURI- 734001.

VERSUS

UNION OF INDIA AND ANR.

REPRESENTED BY EXECUTIVE ENGINEER,

CENTRAL PUBLIC WORKS DEPARTMENT (CPWD),

PROJECT DIVISION, BORJHAR,

KAHIKUCHI BAZAR,

GUWAHATI- 781015.

2:THE CHIEF ENGINEER

CENTRAL PUBLIC WORKS DEPARTMENT (CPWD)

GORCHUCK

GUWAHATI - 781035

Advocate for the Petitioner : MR. R HUSSAIN, F. SHAHIN,MR A A AHMED,MS P SEN

Advocate for the Respondent : DY.S.G.I.,

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BEFORE

HONOURABLE MR. JUSTICE SOUMITRA SAIKIA

ORDER

05.02 .2026

Heard Mr. R. Hussain, learned counsel for the petitioner, also heard MR.

P.K. Medhi, learned CGC appearing for the respondents.

2. This is an application under Section 11 of the Arbitrations and Conciliations

Act 1996. The petitioner was awarded a contract for construction of Residential

Building (Type- V/6 Nos. & Type- IV/03 Nos.) quarters i/e E&M Works at Ftr.

Hqrs., SSB, Sonapur (Assam). Pursuant to the said contract agreement, the

same duly executed by and between the petitioner and the respondent. As per

the said agreement, if any dispute arises between the parties then as per Clause

25 the procedure prescribed would be followed. In terms of Clause 25, the

contractor if he makes a claim of dispute will request the respondent’s authority

to refer the matter for resolution before the Dispute Redressal Committee which

is to be constituted by the respondents in terms of the contract agreement. This

reference is to be made within a period of 15 days from the date on which the

disputes raised by the petitioners are received. The reference is to be made

along with the list of disputes with the amounts claim. The Dispute Redressal

Committee shall give its decision within a period of 60 days that can be

extendable by 30 days by consent of both the parties from the receipt of

reference from the Chief Engineer/ CPM/ ADG/ SDG. Thereafter the Dispute

Redressal Committee will submit its decision to the concerned ADG/ SDG for

acceptance. The ADG/ SDG in a time limit of 30 days from the date of receipt of

the DRC decision will convey acceptance or otherwise of the decision. If DRC

fails to give its decision within the aforesaid period or any party is dissatisfied

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with the decision of Dispute Redressal Committee, then either party may within

a period of 30 days from the receipt of the decision of the Dispute Redressal

Committee or expiry of the aforesaid time limits may give notice to the

respondents for appointment of an arbitrator. Where the claimed amount is

below Rs. 20 crore, then the matter shall be referred to a sole arbitrator.

3. According to the petitioner after the petitioner had completed the work, the

same is not accepted by the respondents. It is submitted that because the

petitioner could not complete the work the contract was terminated. The

petitioner raised his grievances vide communication dated 05.10.2022 raised a

final claim amounting to Rs. 1,67,97,983/-. Thereafter the respondents replied

to the communication that the respondents requested the petitioner several

times to attend the joint measurement in presence of representative of the

petitioner and the respondent. Pursuant thereto, the petitioner by

communication dated 15.11.2022 raised his final claim again requesting the

respondents to refer the dispute to the DRC. The respondents replied by

communication dated 01.12.2022 intimating the petitioner that the

communication for referring the dispute to DRC was received on 30.11.2022 and

the DRC will be constituted accordingly. Subsequently, on 19.12.2022 a

committee was constituted comprising of one member which is at variance from

the members prescribed in the contract in respect of the DRC. Therefore, the

consent