Parties with an arbitration clause must resolve disputes through arbitration, as established in the contract terms.

ORAL ORDER

1. This Civil Miscellaneous Petition is filed under section 11(6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’) seeking for the appointment of the Arbitrators to resolve the disputes between the parties in accordance with the Agreement dated 20.03.2017 at Annexure C in conformity with the provisions under section 12(5) r/w schedule 7 of the Act.

2. Brief facts, leading rise to the filing of this Petition are as follows:

3. Respondent No. 2 had called for tenders vide E-Tender Notice dated 27.05.2016 for the work of Gadag - Hotgi Doubling – Substructure of 2 major Bridges. In response to the said tender notice, the petitioner submitted its tender and became successful lowest eligible tenderer and the same was accepted by the respondent and was awarded to the petitioner vide its acceptance letter dated 05.10.2016. In terms of the Acceptance letter, the approximate value of the work was Rs. 53,94,42,241/- and that the work should be completed within 24 months from the date of acceptance letter i.e., the work should be completed on or before 04.10.2018, however the same was extended subsequently. Further, the agreement was entered into by the parties on 20.03.2017 and the same is governed by the General conditions of the Contract. The work could not be completed even after lapse of 63 months against the original period of 24 months and the respondents railways did not finalize the location and provide the site in terms of scope of contract for completing the balance work. The respondents held the legitimate amount of the petitioner and prevented the petitioner from participating in future tenders. Subsequently, the petitioner invoked arbitration clause and issued the arbitration notice dated 09.08.2021. In response to the said notice, the respondents addressed the a letter dated 16.12.2021 furnishing the names of Retd. Officers as Arbitrators. Further, the petitioner vide letter dated 22.12.2021 refused to choose its nominee from the list furnished by the respondents for the reason being that they are party to the agreement. The petitioner aggrieved by the inaction on the part of the respondents filed a CMP in 338/2022 for the appointment of the Arbitrators. This court disposed of the CMP on 05.12.2022 directing the petitioner to choose two names from the panel submitted by the respondents. The petitioner vide letter dated 23.09.2024 suggested the names of the Arbitrators. In response of which, the respondents issued a letter dated 14.10.2024 stating that the arbitration file has been returned to construction department without nomination of arbitral tribunal due to non submission of nominee contractor. Hence, this petition.

4. Heard the arguments of the learned counsel for the petitioner, and the learned counsel for the respondents.

5. Learned counsel for the petitioner submits that the dispute arose between the parties to the petition regarding the completion of the construction work within time bound and withholding of amount with the respondents. The said dispute is arbitral in nature. The petitioner invoked the arbitration clause by issuing the Arbitration notice, however there was in action on the part of the respondents. He submits that there is an arbitration clause at clause 63 and 64 of the GCC which is inclusive of the Agreement entered into between the parties to the petition and the matter has to be referred to the Arbitration. Accordingly, on these grounds prays to allow the petition.

6. Per contra, learned counsel for the respondents submits that the arbitration file ha