M/S Vijay Kapoor Constructions vs State Of H.P. & Others

M.S. Ramachandra Rao, CJ

This application has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of an Arbitrator to adjudicate the dispute between the parties in terms of Clause 25 of GCC as per Annexure P-2 contract, which had been awarded to the applicant on 21.09.2017.

A legal notice has been issued on 17.12.2022 by the applicant to respondent no.2 invoking arbitration clause while claiming a sum of Rs.2,26,75,009/- from the respondents.

Though, no reply has been given to the said notice, learned counsel for the applicant highlights Annexure P-5 issued by respondent no.2 to the applicant insisting that the applicant would not seek arbitration.

Such a response is not expected of the State and it cannot insist that the applicant cannot seek appointment of Arbitrator to resolve a dispute with it.

Having regard to the fact that there is arbitration clause in the contract between the parties and the same has been invoked through Annexure P-2 notice, this application is allowed and Ms. Devyani Sharma, learned Senior Advocate of this High Court, is appointed as Arbitrator to adjudicate the dispute between the parties, after her disclosure in writing is obtained in terms of Section 11(8) of the Arbitration and Conciliation Act, 1996 and only after receipt thereof, shall her appointment, as an Arbitrator, come into force.

On her giving consent to arbitrate the dispute between the parties as an Arbitrator, Ms.Devyani Sharma, learned Senior Advocate, 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.