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2025 Supreme(Online)(Kar) 39722

THE HIGH COURT OF KARNATAKA
SURAJ GOVINDARAJ
VARUN GUPTA AND CO. – Appellant
Versus
UNION OF INDIA – Respondent
CMP 336/2024



IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ CIVIL MISC. PETITION NO. 336 OF 2024 BETWEEN:

VARUN GUPTA AND CO., REGISTERED OFFICE AT A-64/3, DDA FLATS, SAKET, NEW DELHI-110 017, REPRESENTED BY ITS PROPRIETOR, MR. VARUN GUPTA.

…PETITIONER (BY SRI. GANESH KHANNA, ADVOCATE FOR SRI. ATUL MADHAVAN.,ADVOCATE)

AND:

1. UNION OF INDIA CHIEF PUBLIC WORKS DEPARTMENT, CPWD, 'D' WING, 6TH FLOOR, Digitally signed KENDRIYA SADAN, KORAMANGALA, by SHWETHA BANGALORE-560 034, RAGHAVENDRA REPRESENTED BY ITS Location: HIGH CHIEF ENGINEER (BANGALORE).

COURT OF KARNATAKA

2. EXECUTIVE ENGINEER BANGALORE CENTRAL DIVISION-I, CPWD, 3RD FLOOR, A WING, KENDRIYA SADAN, BANGALORE-560 034.

…RESPONDENTS (BY SRI. KUMAR M N., CENTRAL GOVERNMENT, SENIOR PANEL COUNSEL)

THIS CIVIL MISC. PETITION IS FILED UNDER SECTION

11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO APPOINT SOLE ARBITRATOR FOR ADJUDICATION OF THE DISPUTES BETWEEN THE PARTIES IN ACCORDANCE WITH SETTLEMENT OF DISPUTES AND ARBITRATION CLAUSE 24 OF THE AGREEMENT, ARISING OUT OF AGREEMENT BEARING NO.27/CE/BCD-I/2021-22 (ANNEXURE-B) EXECUTED PURSUANT TO AWARD LETTER DATED 18.11.2021 (ANNEXURE -A)

THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

ORAL ORDER

1. Petitioner is before this Court seeking for the following relief:

"Appointing sole arbitrator for adjudication of the disputes between the parties in accordance with settlement of disputes and arbitration clause 24 of the agreement, arising out of agreement bearing no.27/CE/BCD-I/2021-22 (ANNEXURE-B); executed pursuant to award letter dated 18.11.2021 (ANNEXURE -A)".

2. The respondents have quoted a tender for augmentation of short-circuit test facilities at High Power Laboratory CPRI, Bengaluru and certain other works where the petitioner was declared the successful bidder and awarded the contract. The said tender was governed by an arbitration clause in terms of Clause 25 thereof which is reproduced hereunder for ready reference;

"Clause 25- Settlement of Disputes &

Arbitration.

Except where otherwise provided in the contract, all questions and disputes relating to the meaning of the specifications, design, drawings and instructions here-in before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever in any way arising out of or relating to the contract, designs, drawings, specifications, estimates, instructions, orders or these conditions or otherwise concerning the works or the execution or failure to execute the same whether arising during the progress of the work or after the cancellation, termination, completion or abandonment thereof shall be dealt with as mentioned hereinafter:

(i) If the contractor considers any work demanded of him to be outside the requirements of the contract, or disputes any drawings, record or decision given in writing by the Engineer-in-Charge or if the Engineer in Charge considers any act or decision of the contractor on any matter in connection with or arising out of the contract or carrying out of the work, to be unacceptable and is disputed, such party shall promptly within 15 days of the arising of the disputes request the Chief Engineer/ CPM, or where there is no Chief Engineer/CPM, request the Additional Director General/Special Director General, who shall refer the disputes to Dispute Redressal Committee (DRC) within 15 days along with a list of disputes with amounts claimed if any in respect of each such dispute. The Dispute Redressal Committee (DRC) give its decision within a period of 60 days extendable by 30 days by consent of both the parties from the receipt of reference from CE/CPM/ADG/SDG. The constitution of Dispute Redressal Committee (DRC) shall be as indicated in Schedule 'F'. Provided that no party shall be represented before the Dispute Redressa

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