IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Sunita Agarwal, CJ
Suraj Infra Projects – Appellant
Versus
Chief Engineer, Bhopal Zone – Respondent
R/MISC. CIVIL APPLICATION (FOR RECALL) NO. 2443 of 2025|R/PETN. UNDER ARBITRATION ACT/37/2023
| Table of Content |
|---|
| 1. procedural history and mandate for review. (Para 1 , 2 , 3 , 4) |
| 2. assessment of factual inconsistencies and evidentiary concealment. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11) |
| 3. doctrine of clean hands in judicial proceedings. (Para 12 , 13 , 14) |
| 4. final adjudication of review and imposition of costs. (Para 15 , 16) |
ORAL ORDER
1. The present application has been filed seeking for recall of the order dated 07.02.2025 passed by this Court in rejecting the Arbitration Petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act, 1996’), noticing that the petitioner – contractor has received payment under the contract/agreement in question and had given a No-More Claim Certificate towards the said payment. However, after receipt of the payment, notice dated 27.05.2019 was sent to the Assistant Garrison Engineer (I) (Army) (Infantry Lines), Jamnagar asking for the payment against of Running Account Receipts (RAR), and final bill on the premise that he has not received RAR payment till date and the final bill had not been paid to it.
2. It is noticed in the judgment under review that the notice invoking arbitration clause was sent on 12.05.2021 and thereafter, the Arbitration Petition was presented on 16.12.2022 seeking for appointment of Arbitrator. It was, thus, opined that invoking of arbitration clause No. 17 of the General Conditions of the contract is nothing but an afterthought. While saying so, it was noted from the reply affidavit filed on behalf of the respondent in Paragraph Nos. ‘6’ and ‘7’ of the judgment under review, which read as under:-
“6) Attention of the Court is invited to Page nos. ‘281’ to ‘283’ of the Paper-book to demonstrate that after receipt of the payment against the final bill, on 20.04.2019, the petitioner contractor made the following declaration:-
“It is certified that I have performed this final bill for claiming entire payment due to me from this contract agreement. This final bills include all claims raised by me from time to time irrespective of the fact whether they are admitted/accepted by the department or not. I now dategorically certified that I have not more claims in respect of this contract beyond these already included in this final bill by me and this amounts so claimed by me shall be in full and final satisfaction of all my claims under this contract agreement I shall hovewer resolve my right to raise claim to the extent desollowed to me from this final bill.”
7) The reference of this declaration contained in the final bill has been made in the response to the letter dated 12.11.2021 sent by the petitioner seeking for appointment of the arbitrator. A perusal of Page No. ‘281’ of the paper-book indicates that in the letter dated 28.07.2022, it was intimated to the petitioner that his request for appointment is not admissible in view of the letter of the headquarter dated 12.11.2021, wherein it was intimated that “the final bill against the above contract was signed by you with clear ‘no further claim certificate’, therefore, as per Condition 65 of IAFW – 2249 General Conditions of the Contract, “No further claim shall be made by you after submission of the final bill”.”
3. On a challenge to the order dated 07.02.2025 of rejection of the application under Section 11 of the Act, 1996, the Apex Court has passed the following order:-
“1. Delay condoned.
2. The learned counsel appearing for the petitioner would submit that the findings recorded in para 8 of the impugned order are contrary to the materials on record. If that be the case, the petitioner should go back to the High Court and point out the error.
3. With the aforesaid, this petition stands disposed of with liberty to go back to the High Court.
4. Pending application(s), if any, stand disposed of.”
4. A careful reading of the order of the Apex Court indicates that while condoning the delay in filing the Special Leave Petition challenging the judgment under rev
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.