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2021 Supreme(Online)(RAJ) 1330
HIGH COURT OF RAJASTHAN (JAIPUR BENCH)
HON'BLE THE CHIEF JUSTICE, CJ
M/s Blg Construction Service Private Limited – Appellant
Versus
Rajcomp Info Services Ltd. – Respondent
Arbitration Application No. 19/2021
For the Appellants/Petitioners: Mr. Jitendra Sharma
For the Respondents: Mr. Umang Gupta, Mr. Peeyush Agarwal, Ms. Priyal Kothari
The court established that disputes arising from a contract warrant arbitration under the Arbitration and Conciliation Act, asserting that relevant appeal procedures were not applicable in this context.
Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11 - Appointment of Arbitrator - Arbitration application initiated for appointment of an Arbitrator as per terms of the work order - Respondent's contention based on RFP clause regarding appeals addressed - Court's satisfaction upheld petitioner’s claim for arbitration. (Paras 2, 4, 7)
(B) Procurement Regulations - Compliance and grievance procedures governed by Rajasthan Transparency in Public Procurement Act, 2012 - The applicability clarified in context of disputes arising from contract award.
Facts of the case:
The arbitration application was filed under Section 11 for appointing an Arbitrator in accordance with the work order between the parties, following disputes after the award of the contract.
Findings of Court:
The court appointed the retired judge as Arbitrator to resolve disputes between the parties based on the agreement and arbitration laws, ensuring that parties could present all claims and objections.
Issues: The Court discussed the relevance of the RFP clause regarding the nature of grievances permissible and the applicability of arbitration provisions.
Ratio Decidendi: The court primarily concluded that since the disputes arise from the awarded contract, arbitration principles apply; thus an Arbitrator was appointed without prejudice to existing rights.
Result: Application allowed.
| Table of Content |
|---|
| 1. legitimacy of arbitration based on a work contract. (Para 2) |
| 2. applicability of appeal clauses to awarded contracts. (Para 3) |
| 3. appointment of arbitrator to resolve disputes. (Para 4) |
Order
24/08/2021
1. Heard learned counsel for the respective parties.
2. This arbitration application has been filed under Section 11 of the Arbitration & Conciliation Act, 1996 (hereinafter to be referred as ‘the Act of 1996’) for appointment of an Arbitrator in terms of Clause 47 of the RFP read with the work order dated 27.03.2018 (Annexure-R-1) entered into between the parties.
3. Learned Counsel for the respondent drew the attention of the Court to clause 35 of the RFP at page 32 which is quoted hereinbelow:-
“35)Appeals
a) Subject to “Appeal not to lie in certain cases” below, if any bidder or prospective bidder is aggrieved that any decision, action or omission of the procuring entity is in contravention to the provisions of the Act or the rules or guidelines issued thereunder, he may file an appeal to such officer of the procuring entity, as may be designated by it for the purpose, within a period of 10 days from the date of such decision or action, omission, as the case may be, clearly giving the specific ground or grounds on which he feels aggrieved:
a. Provided that after the declaration of a bidder as successful in terms of “Award of Contract”, the appeal may be filed only by a bidder who has participated in procurement proceedings:
b. Provided further that in case a procuring entity evaluates the technical Bid before the opening of the financial Bid, an appeal related to the matter of financial Bid may be filed only by a bidder whose technical Bid is found to be acceptable.
b) The officer to whom an appeal is filed under (a) above shall deal with the appeal as expeditiously as possible and shall endeavour to dispose if of within 30 days from the date of filing of the appeal.
c) If the officer designated under (a) above fails to dispose of the appeal filed under that sub-section within the period specified in (c) above, or if the bidder or prospective bidder or the procuring entity is aggrieved by the order passed, the bidder or prospective bidder or the procuring entity, as the case may be, may filed a second appeal to an officer or authority designated by the State Government in this behalf within 15 days from the expiry of the period specified in (c) above or of the date of receipt of the order passed under (b) above, as the case may be.
d) The officer or authority to which an appeal is filed under (c) above shall deal with the appeal as expeditiously as possible and shall endeavour to dispose it of within 30 days from the date of filing of the appeal:
e) The officer or authority to which an appeal may be filed under (a) or (d) above shall be: First Appellate Authority: Principal Secretary, IT & C, GoR Second Appellate Authority: Secretary (Budget), Finance Department, GoR
f) Form of Appeal:
a. Every appeal under (a) and (c)above shall be as per Annexure-17 along with as many copies as there are respondents in the appeal.
b. Every appeal shall be accompanied by an order appealed against, if any, affidavit verifying the facts stated in the appeal and proof of payment of fee.
c. Every appeal may be presented to First Appellate Authority or Second Appellate Authority, as the case may be, in person or through registered post or authorised representative.
g) Fee for Appeal: Fee for filing appeal: a. Fee for first appeal shall be rupees two thousand five hundred and for second appeal shall be rupees ten thousand, which shall be non-refundable.
b. The fee shall be paid in the form of bank demand draft or banker’s cheque of a Scheduled Bank payable in the name of Appellate Authority concerned.
h) Procedure for disposal of appeal:
a. The First Appellate Authority or Second Appellate Authority, as the case may be, upon filing of appeal, shall issue notice accompanied by copy of appeal, affidavit and documents, if any, to the respondents and
