2022 Supreme(Online)(MAD) 13025
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 20.07.2022 CORAM THE HON'BLE Mr.JUSTICE M.SUNDAR Arb.OP.(Com.Div) No.216 of 2022 M/s.Shape Maker Represented by its Partner Mr.K.Senthil Kumar, No.8/1, 1st Anna Street, Thirumullaivoil, Chennai-600 062.
... Petitioner -Vs-
1. Chief Engineer (Air Force)
No.2, DC Area, MES Road, Yashwathpur Post, Bangalore-560 022.
2. Commander Works Engineer (Air Force) Military Engineer Services Head Quarters, SAC IAF Complex, Akkulam, Thuruvikkal Post, Trivandrum-11.
3. Garrison Engineer (Air Force), Military Engineer Services Air Force Station, Pudukottai Road, Thanjavur-613 005.
...Respondents Prayer: Arbitration Original Petition filed under Section 11(5) and 11(6) of The Arbitration and Conciliation Act, 1996 to appoint a Sole Arbitrator from amongst the list of the empanelled arbitrators of Ministry of Defence as per letter dated 07.02.2022 and governed by conditions stated therein, to decide all the disputes arising out of or in connection with the Contract bearing "CWE(AF)/TVM/TAN/03 of 2019-2020" "Provn of High Voltage Stabilizer and Captive Power Supply Source (DG Set) for Technical Area at AF Station Thanjavur", executed between the Petitioner and Respondents and to adjudicate on the disputes as per the General Conditions of Contracts of Military Engineer Services I.A.F.W-2249 and pass such other orders as this Hon'ble Court may deem fit and proper in the above facts and circumstances of the case.
For Petitioner : Mr.S.Chetan Prakash For Respondents : Mr.K.S.Jeyaganeshan Senior Panel Counsel Government of India ****
ORDER
Captioned Arb OP will now be disposed of by this consent order.
2. Before proceeding further, it is necessary to make it clear that the consent is only with regard to appointment of arbitrator and not with regard to arbitrable disputes.
3. Be that as it may, this order shall now be read in conjunction with and in continuation of earlier proceedings made in the first listing of captioned Arb.OP before this Court on 06.06.2022, which reads as follows:
'Captioned 'Arbitration Original Petition' [hereinafter 'Arb OP'
for the sake of convenience and clarity] is predicated on a contract captioned 'Provn of High Voltage Stabiliser and Captive Power Supply Source (DG Set) for Technical Area at AF Station Thanjavur' [hereinafter 'primary contract' for the sake of convenience and clarity].
2. Learned counsel for petitioner submits that General Conditions of Contract forms part of the aforementioned primary contract and arbitration clause is clause 70 thereat. It is submitted that the arbitrable disputes arose, the petitioner who is a contractor issued trigger notice dated 29.01.2022 which met with a reply dated 07.02.2022 wherein, the Engineer-in-Chief has made an internal request for immediate appointment of Arbitrators but nothing further has happened necessitating the presentation of the captioned Arb OP.
3. Issue notice to respondents returnable in a fortnight i.e., returnable by 20.06.2022. Private notice permitted. Learned counsel for petitioner is also permitted to serve on learned standing counsel/State Counsel for the respondents (if any).
4. List on 20.06.2022.'
4. Aforementioned 06.06.2022 proceedings shall be read as an integral part and parcel of this order. This also means that abbreviations, short forms and short references used in the previous proceedings dated 06.06.2022 shall continue to be used in the instant order for the sake of convenience and clarity.
5. Today, Mr.S.Chetan Prakash, learned counsel on record for sole petitioner and Mr.K.S.Jeyaganeshan, learned senior panel counsel for Government of India on behalf of all the three respondents are before this Court.
6. Adverting to aforementioned 06.06.2022 proceedings and petition in the captioned Arb.OP, more particularly paragraph 6 thereat, this Court is informed that arbitrable disputes inter alia pertain to alleged non completion of work within six months i.e., by 19.11.2019, two extensions thereafter i.e., upto 31.03.2020, 20.09.2020 and refusal to grant extension thereafter. It is not necessary to dilate any further on these aspects of the matter as all arbitrable disputes and all questions are left open to be decided by sole arbitrator who is to be appointed (infra in this order).
7. Before doing that, it is necessary to record that there is no disputation or disagreement between the parties about Clause 70 [captioned 'Arbitration'] of 'General Conditions of Contract' ['GCC' for the sake of convenience and clarity], which forms part of the contract between the parties. This Clause 70 of GCC reads as follows:
'70.Arbitration-All disputes, between the parties to the Contract (other than those for which the decision of the C.W.E. or any other person is by the Contract expressed to be final and binding) shall, after written notice by either party to the Contract to the other of them, be referred to the sole arbitration of a [Serving Officer having degree in Engineering or equivalent or having passed final/direct final Examination of sub-Division II of Institution of Surveyor (India) recognized by the Govt. of India] to be appointed by the authority mentioned in the tender documents.
Unless both parties agree in writing such reference shall not take place until after the completion or alleged completion of the Works or termination or determination of the Contract under Condition Nos.55, 56 and 57 hereof.
Provided that in the event of abandonment of the Works or cancellation of the Contract under Condition Nos.52, 53 or 54 hereof, such reference shall not take place unti