IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

Date of decision: 19.12.2025

Ms SAB Industries Limited

…….Applicant(s)

Versus

Union of India and another

….Respondent(s)

CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE

Present: Mr. P.S. Rana, Advocate

for the applicant(s).

Mr. Arvind Seth, Senior Panel Counsel

for the respondent(s).

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SHEEL NAGU, CHIEF JUSTICE ( Oral )

1. Instant application u/s 11 (6) of Arbitration and Conciliation Act, 1996 (for short, ‘1996 Act’), seeks appointment of

an independent Arbitrator.

2. The rival Parties herein entered into agreement/work order and tender document dated 01.03.2017 (Annexure A-1)

containing an arbitration clause as follows:

"64 (1) (i) In the event of any dispute or difference between the parties hereto as to the construction or operation of this contract, or operation of this contract, or the respective rights and liabilities of the parties on any matter in question, dispute or difference on any account or as to the withholding by the Railway of any certificate to which the contractor may claim to be entitled to, or if the Railway fails to make a decision within 120 days, then and in any such case, but except in any of the "excepted matters" referred to in Clause 63 of these Conditions, the contractor, after 120 days but within 180 days of his

presenting his final claim disputed matter shall demand in writing that the dispute or difference be referred to arbitration.

64 (1) (ii) The demand for arbitration shall specify the matters which are in question, or subject of the dispute or difference as also the amount of claim item-wise. Only such dispute(s) or difference(s) in respect of which the demand has been made together with counter claims or set off, given by the Railway, shall be referred to arbitration and other matters shall not be included in the reference.

64 (1) (iii) (a) The Arbitration proceedings shall be assumed to have commenced from the day, a written and valid demand for arbitration is received by the Railway.

(b) The claimant shall submit his claim stating the facts supporting the claims alongwith all the relevant documents and the relief or remedy sought against each claim within a period of

30 days from the date of appointment of the Arbitral Tribunal.

(c) The Railway shall submit its defence statement and counter claim(s), if any, within a period of 60 days of receipt of copy of claims from Tribunal thereafter, unless otherwise extension has been granted by Tribunal.

(d) Place of Arbitration: The place of arbitration would be within the geographical limits of the Division of the Railway where the cause of action arose or the Headquarters of the concerned Railway or any other place with the written consent of both the parties.

64 (1) (iv) No new claim shall be added during proceedings by either party. However, a party may amend or supplement the original claim or defence thereof during the course of arbitration proceedings subject to acceptance by Tribunal having due regard to the delay in making it.

64 (1) (v) If the contractor(s) does/do not prefer his/their specific and final claims in writing, within a period of 90 days of receiving the intimation from the Railways that the final bil is ready for payment, he/they will be deemed to have waived his/their claim(s) and the Railway shall be discharged and released of all liabilities under the contract in respect of these claims.

64 (2) Obligation During Pendency of Arbitration Work under the contract shall, unless otherwise directed by the Engineer, continue during the arbitration proceedings, and no payment due or payable by the Railway shall be withheld on account of such proceedings, provided, however, it shall be open for Arbitral Tribunal to consider and decide whether or not such work should continue during arbitration proceedings.

64 (3) Appointment of Arbitrator:

64 (3) (a) (i) In cases where the total value of all claims in question added together does not exceed Rs.25,00,000 (Rupees twenty five lakh only), the Arbitral