IN THE HIGH COURT OF JHARKHAND AT RANCHI
Arbitration Application No. 15 of 2007
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M/s Geetanjali Enterprises.. ....... ........ ... .....Petitioner
Versus
1.The Govt. of Jharkhand
2.The Engineer in Chief, Drinking Water and Sanitation Department
3.The Chief Engineer, Drinking Water and Sanitation Department
4.The Executive Engineer,
Drinking Water and Sanitation Department... ... ..... Respondents
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CORAM: HON'BLE THE ACTING CHIEF JUSTICE
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For the Petitioner: Mr. Rajiv Ranjan
For the Respondents: Mr. Dhananjay Kr. Dubey
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13/04.05.2010
Heard the parties.
By this application, filed under Section 11 (6) of the
Arbitration & Conciliation Act, 1996, prayer has been made for
appointment of an arbitrator for settlement of disputes and claims
raised by the petitioner. It appears that pursuant to tender invited by
the respondents, for construction of Pathargaria, Kermodih and
adjoining village water supply scheme consisting construction of
intake well, settling tank, Pressure filter etc., the petitioner was
awarded the contract.
The petitioner’s case is that although contract was awarded
in 2003 but the drawing was not made available as a result work
could not be done. Subsequently the work was executed and as
per the direction of the respondents some additional work was also
executed. The dispute arose between the parties with regard to
payment of bills etc. The petitioner accordingly requested the
respondents to get the matter settled through the mode of
arbitration which exceeded to this application.
A counter affidavit has been filed wherein existence of the
agreement of the arbitration agreement has not been denied or
disputed by the respondents. In paragraph 6 of the counter
affidavit, it is stated that according to Clause 10 of the Work Order
in case of any dispute the discretion of Drinking Water and
Sanitation Department, Government of Jharkhand shall be final and
binding upon the parties concerned. However, it is disputed that as
per the Work Order there was no escalation clause. Hence, the
question of payment of cost does not arise. Lastly, it is stated that
the application relating to claim of the petitioner was forwarded to
higher authorities for necessary action.
As noticed above, the existence of agreement, arbitration
clause contain therein and the question of limitation has not been
denied or disputes by the respondents. The only defence taken is
that as per the agreement the petitioner is not entitled to any further
claim. Hence, in my opinion, it is a fit case to be referred to the
arbitrator. It appears from the pleading of the parties that the claim
of the petitioner was forwarded to the Chief Engineer, Drinking
Water and Sanitation Department, Government of Jharkhand for
final decision.
Hence, this application is allowed and the Chief Engineer,
Drinking Water and Sanitation Department, Government of
Jharkhand is directed to adjudicate the claim of the petitioner and
take a decision by passing an award within a period of four months
from the date of entering into the reference.
(M. Y. Eqbal, A.C.J)
Alankar/