M/s Oasis Enterprises vs State Of H.P. & Others

M.S. Ramachandra Rao, CJ

This Arbitration Application is filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator for adjudication of a dispute arising out of an Agreement/Contract bearing Agreement no. 68 of 2017-2018.

The said agreement was entered into after award of the following work was made to the applicant by the respondents “for providing PLWSS Parlog Khad to Behli Dhar Mahunag in GP Mahunag, Tehsil Karsog, District Mandi (HP) (SH: Supplying and Erection of Pumping Machinery in 1st & 2nd stages).

Thereafter a dispute arose between the parties.

The applicant contended that the completion of the work was dependent on fulfillment of reciprocal promises by the respondents, one of which was to provide possession of workable unhindered workable site and furnished related material, provide design and drawings and payments of work done and that the respondents had failed in that regard. It is also contended that there was failure on the part of the respondents to provide material of different measurements and they had also failed to supply power.

According to the applicant, this resulted in delay in completion of work and escalation of payments, and that an outstanding payment of Rs. 84,64,875/- is due to the applicant, which has not been settled by the respondents.

It is contended that the applicant had issued a notice dt.17.10.2022, which was served upon respondent no. 3 invoking arbitration Clause 25 of the said Agreement, but there is no reply given by the respondents to the same.

In the reply filed on behalf of the respondents, certain contentions on merits were raised and it is contended that Clause 25 of the Arbitration Agreement cannot be invoked.

Having perused Clause 25 of the Agreement, I am of the opinion that prima-facie it appears to cover the dispute raised by the applicant.

In this view of the matter, Shri T.N. Vaidya, District & Sessions Judge (Retd.), is appointed as an Arbitrator to resolve the dispute between the parties, after his disclosure in writing is obtained in terms of Section 11(8) of the Act, and only after receipt thereof, shall his appointment, as an Arbitrator, come into force.

On his giving consent to arbitrate the dispute between the parties as an Arbitrator, Shri T.N. Vaidya, District & Sessions Judge (Retd.), R/o 175/11 Tarna Road Mandi, H.P. shall enter into reference, and shall pass an award in accordance with law.

Copy of this order be forwarded to the learned Counsel for the parties as also to the learned Arbitrator. The learned Arbitrator so appointed shall be entitled to fee as per stipulation contained in 4th Schedule appended to the Arbitration and Conciliation Act, 1996.

The application is disposed of accordingly alongwith pending application(s), if any.