GPT-SMC (JV) & ORS. vs THE KOLKATA MUNICIPAL CORPORATION

I have heard Mr. Anirban Ray, Advocate appearing for the petitioner and Mr. Alok Ghosh, Advocate for the Kolkata Municipal Corporation.

This is an application under Section 11(6) of the Arbitration and Conciliation Act, 1996. The background of the case is that the petitioner no.1 is a joint venture and petitioner nos.2 and 3, namely, GPT Infrastructure Ltd. having its registered office at GPT Centre JC-25, Sector-III, Salt Lake, Kolkata- 700 098 and SMC Infrastructures Pvt. Ltd. having its registered office at Konark Towers, Opposite Shree Saibaba Temple, Shree Ghantali Devi Road, Thane (West), 400 062, Maharashtra. The petitioners were involved in various civil constructions and engineering works. The petitioner no.1 participated in a tender on 11th August, 2011 floated by the respondent vide tender notice No.DG(WS)/50/2011-12/KMC and the said tender was accepted. An agreement was arrived at by and between the parties. There is a clause in the said agreement that if there is any dispute between the parties that should be referred to arbitration. Under the said agreement clause 25 relates to settlement of dispute in arbitration. It would appear from Annexure-NNN at page 720 of volume 5 of this petition that Hon''ble Justice Pranab Kumar Chattopadhyay, former Judge, High Court was appointed by the competent authority of Kolkata Municipal Corporation as the sole arbitrator for resolving the disputes arising out of the contract for "Construction of Jetty and Raw Water Pumping Station at Maer Ghat (Bagbazar) for Dhapa Water Treatment Plant" between GPT-SMC(JV) and the Kolkata Municipal Corporation.

The said appointment was communicated vide memo no.L- 66/LAW/2016-17 dated December 30, 2016. A letter was also communicated to the Chief Municipal Law Officer to follow up with the Hon''ble Mr. Justice P.K. Chattopadhyay in order to expedite the arbitration proceedings. In spite of such agreement no steps were taken by the learned Arbitrator to proceed with the arbitration. Accordingly, the petitioner by letter dated 29th March, 2017 and 20th June, 2017 called upon the respondent to make alternative appointment vide letters marked with the letters PPP and QQQ respectively. However, the respondent have not taken any steps to name or appoint another new arbitrator even after the lapse of ten months from the date of appointment of Justice Retired Pranab Kumar Chattopadhyay, vide letter dated 30th December, 2016.

Accordingly, the petitioners have taken out this application with a prayer for appointment of an arbitrator to adjudicate the dispute between the parties arising out of the work order/purchase order dated 6th January, 2012 by terminating the appointment letter dated 30.12.2016 and, in place, to appoint any arbitrator.

Mr. Anirban Ray, learned Counsel for the petitioners and Mr. Achinta Banerjee, learned Counsel for the Kolkata Municipal Corporation have agreed to the appointment of any retired judge of this Hon''ble Court. I have proposed the name of Justice Indrajit Chatterjee, since retired and the learned Counsel for the parties have agreed to such proposal. Accordingly, the letter of appointment dated 30th December, 2016 issued by the Chief Municipal Law Officer favouring Hon''ble Justice Pranab Kumar Chattopadhyay, former Judge, High Court, Calcutta is hereby terminated. Instead, the Hon''ble Justice Indrajit Chatterjee, former Judge, High Court, is appointed to adjudicate the dispute between the parties in terms of the agreement within the stipulated period under the Act which period will commence from the date of receipt of the communication of this order and with all papers.

Thus, A.P.No.963 of 2017 is hereby disposed of.