K.K.Anilkumar vs Simplex Infrastructures Limited

G.Girish, J

The applicant, a contractor engaged in Architectural, Engineering and related activities, has filed this Arbitration Request in connection with the amounts due from the respondents as remuneration of the work of piping fabrication and erection of clean agent gas system at MSBP and DHDS sites for M/s. BPCL, Kochi.

It is stated that as per Annexure-1 work order dated 02.02.2020, the applicant had completed the works undertaken and issued 6 running account bills with final bill for a total amount of Rs.86,73,783/-to the respondents. Out of the above amount, the respondents are said to have released only Rs.60,83,934/-, and the balance amount outstanding as on the date of application is Rs.28,64,353/-. Aggrieved by the refusal of the respondents to make payment of the aforesaid amount, inspite of repeated demands, the petitioner has approached this Court with this Arbitration Request as provided under the terms of agreement with the respondents.

Clause 20 of Annexure 1 work order would reveal that the dispute or difference arising out of the terms and conditions of the said work order are to be resolved through the appointment of a sole Arbitrator. Furthermore, as per Annexure 1 work order, there existed a valid and legally enforceable agreement between the parties which contained a valid arbitration clause for the resolution of the disputes. Annexure 2 notice issued by the petitioner would reveal that the respondents were duly intimated by the petitioner about their desire to have the issues resolved through the appointment of an Arbitrator in accordance with the terms of the agreement between them. As the respondents have not cared to co-operate with the petitioner in having the disputes settled by adopting the course provided under the terms of the agreement with the petitioner, the claim of the petitioner for the appointment of an Arbitrator at the instance of this Court, is well founded.

In the result, the application stands allowed and an order is passed as follows:

i) Adv. Mr. Abraham Vakkanal, Senior Advocate is nominated as the sole Arbitrator to arbitrate upon the disputes that have arisen between the petitioner and the respondent within the purview of Annexure-1 work order.

ii) The learned Arbitrator is at liberty to rule on all issues between the parties in connection with the said agreement, including his own jurisdiction if the parties raise such a dispute.

iii) The Registry is directed to communicate a copy of this order to the learned Arbitrator within a period of ten days from today and to obtain a Statement of Disclosure from the  learned  Arbitrator as provided under Section 11(8) read with Section12(1) of the Act.

iv) Once the Disclosure Statement is obtained from the learned Arbitrator, the Registry shall issue the certified copy of this order to the learned Arbitrator, with a copy of the said statement appended to it, retaining the original of the same by this Court.

v) The fees of the learned Arbitrator shall be governed by the Fourth Schedule of the Act.

vi) The learned Arbitrator shall decide the manner in which the fees and expenses of the arbitration proceeding has to be paid by the parties.

vii) The parties will appear before the learned Arbitrator on such date and place as decided by the learned Arbitrator.