The petitioner has prayed for appointment of an arbitrator to resolve disputes between the petitioner and the respondent arising out of an agreement dated 05.06.2007.
It is not in dispute that said agreement contained an arbitration clause in para 16 providing inter alia that if for any reason any dispute arises with respect to the interpretation of the terms of the agreement or, if any other dispute raises between the parties, the same shall be resolved through arbitration proceedings in terms of Arbitration and Conciliation Act, 1996 and the decision of the arbitrator shall be binding to both parties.
From the record it emerges that, the respondent-Nagarpalia had supplied a tender for executing work of contract of railway underpass. The petitioner's tender having been approved, above mentioned contract was entered into between the parties.
Counsel for the petitioner submitted that the respondent-Nagarpalika could not obtain clearance from the Railway Authorities for the construction of such underpass and that therefore, construction never commenced. The work was never executed. However, the petitioner kept machinery and man power ready for a long period of time. For damages arising out of the same and for loss of profit due to non-execution of work, the petitioner raised a demand of Rs. 51,42,020/- in the notice dated 17.10.2011. In such notice issued by the petitioner through its advocate, in addition to raising such demand, it was also conveyed that the respondent should appoint a sole arbitrator from the panel of two names suggested by the petitioner in the notice. If within thirty days the respondent failed to do so, the petitioner would proceed to appoint its arbitrator leaving it to the respondent to appoint an arbitrator of its choice and such arbitrator would appoint third umpire. Failing which, the petitioner would approach the High Court for appointment of an arbitrator.
There was no reply from the respondent to this notice. Thereupon, the petitioner has filed this arbitration petition.
Though served none appeared for the respondent.
From the record and the submissions made by the counsel for the petitioner it emerges that there is an arbitration agreement between the parties. The petitioner has raised disputes arising out of the agreement. Petitioner also called upon the respondent to agree to an arbitrator. Respondent failed to reply to such a notice.
Under the circumstances, Shri C.K.Buch, retired Judge of this Court is requested to act as Sole Arbitrator to resolve the disputes between the parties.
Petition is disposed of accordingly.
[AKIL KURESHI, J.] JYOTI Top