{"id":119860,"date":"2009-05-19T00:00:00","date_gmt":"2009-05-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-indeera-builders-p-ltd-vs-union-of-india-ors-on-19-may-2009"},"modified":"2015-02-11T15:30:07","modified_gmt":"2015-02-11T10:00:07","slug":"ms-indeera-builders-p-ltd-vs-union-of-india-ors-on-19-may-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-indeera-builders-p-ltd-vs-union-of-india-ors-on-19-may-2009","title":{"rendered":"M\/S Indeera Builders (P) Ltd vs Union Of India &amp; Ors on 19 May, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Rajasthan High Court &#8211; Jodhpur<\/div>\n<div class=\"doc_title\">M\/S Indeera Builders (P) Ltd vs Union Of India &amp; Ors on 19 May, 2009<\/div>\n<pre>                               1\n\n          S.B. Arbitration Application No.59\/2007\n          M\/s. Indeera Builders (petitioner) Ltd.\n                             vs\n                    Union of India &amp; Ors\n\nDATE OF ORDER: 19.5.2009\n\n              HON'BLE MR. PRAKASH TATIA, J.\n<\/pre>\n<p>Mr. SD Vyas, for the petitioner.\n<\/p>\n<p>Mr. Kamal Dave, for the respondents. .\n<\/p>\n<\/p>\n<p>     Heard learned counsel for the parties.\n<\/p>\n<p>     The contract was entered into between the applicant and<\/p>\n<p>Union of India through Chief Engineer (Construction) North<\/p>\n<p>Western Railway, Jaipur on 23.9.2004.      By this contract, the<\/p>\n<p>petitioner was given some work contract and the period of the<\/p>\n<p>contract was 11 months and the work was to be completed by<\/p>\n<p>14th June, 2005. According to the petitioner due to the fault of<\/p>\n<p>the respondent-Railway Department and circumstances beyond<\/p>\n<p>the control of the petitioner, the work period was sought to be<\/p>\n<p>extended upto Dec., 2005, but it was extended only upto<\/p>\n<p>14.8.2005. According tot he petitioner, he was in process of<\/p>\n<p>completing the work, but the contract was terminated on 5th<\/p>\n<p>July, 2005 pre-maturely and, therefore,, the petitioner suffered<\/p>\n<p>loss. The petitioner alleged that the termination of the contract<\/p>\n<p>was absolutely illegal and it should not have been terminated at<\/p>\n<p>the fag end of the completion of the work. Be it as it may be,<br \/>\n<span class=\"hidden_text\">                                   2<\/span><\/p>\n<p>the dispute arises between the parties as petitioner has sought<\/p>\n<p>claims referred in this petition.     The petitioner requested the<\/p>\n<p>respondent to appoint the arbitrator by serving a notice vide<\/p>\n<p>letters dated 9th Sept., 2005, 30th Dec., 2005 and 16th Jan.,<\/p>\n<p>2006.     The respondent refused to appoint the arbitrator by<\/p>\n<p>communication dated 21.3.2006, copy of which has been placed<\/p>\n<p>on record as Annex.C.      The respondent refused to appoint the<\/p>\n<p>arbitrator on the ground that the respondents examined the<\/p>\n<p>claim of the petitioner and found that most of the claims covered<\/p>\n<p>under excepted matters as described in clause No.63 of the<\/p>\n<p>General Conditions of Contract. Apart from above, it has been<\/p>\n<p>stated that the petitioner left the work incomplete and this work<\/p>\n<p>was terminated at petitioner&#8217;s risk and cost, therefore, earnest<\/p>\n<p>money of Rs.50,000\/- and security deposit of Rs.2.50 lacs were<\/p>\n<p>forfeited as per clause no.16 of the General Conditions of<\/p>\n<p>Contract. It is also stated that there is no price escalation clause<\/p>\n<p>in this contract, thus your claim no.6 is also beyond the scope of<\/p>\n<p>contract.    It is also stated that petitioner failed to execute the<\/p>\n<p>work in stipulated time period, thus, the balance work was<\/p>\n<p>executed from other agency at the risk and cost of the petitioner<\/p>\n<p>including liability for the petitioner of Rs.14,18,992\/-.<\/p>\n<p>        Learned counsel for the petitioner submits that there is no<\/p>\n<p>dispute that there is arbitration clause and whether the claim<\/p>\n<p>falls under the excepted matters is concerned, that also can be<br \/>\n<span class=\"hidden_text\">                                     3<\/span><\/p>\n<p>decided by the arbitrator and when respondent themselves<\/p>\n<p>stated that &#8220;most of the claims cover under excepted matters&#8221;<\/p>\n<p>then admittedly, there are other claims of the petitioner which<\/p>\n<p>were raised before the respondent were not the claims falling<\/p>\n<p>under the &#8220;excepted matters&#8221;. It is submitted that petitioner is<\/p>\n<p>disputing the respondent&#8217;s contention that any of the matter is<\/p>\n<p>falling under the &#8220;excepted matters&#8221; and, therefore, cannot be<\/p>\n<p>referred to arbitrator.       It is also submitted that instead of<\/p>\n<p>referring     the   dispute   to   the   arbitrator,   it   appears   that<\/p>\n<p>respondents themselves had decided the dispute which they<\/p>\n<p>could not have decided.\n<\/p>\n<p>      Learned counsel for the respondent submitted that the<\/p>\n<p>&#8220;excepted matters&#8221; cannot be referred to the arbitrator in view<\/p>\n<p>of clause 63 of the General Conditions of the Contract.               It is<\/p>\n<p>submitted that even if any arbitrator is appointed then that is<\/p>\n<p>required to be appointed as per clause 64(3)(a)(iii), which<\/p>\n<p>provides that no person other than a gazetted Railway Officer<\/p>\n<p>should act as an Arbitrator\/Umpire and if for any reason, that is<\/p>\n<p>not possible, the matter is not to be referred to arbitration at all.<\/p>\n<p>Therefore, only a gazetted Railway Officer can be appointed as<\/p>\n<p>arbitrator.\n<\/p>\n<p>      I considered the submissions of learned counsel for the<\/p>\n<p>parties and perused the facts of the case.\n<\/p>\n<p>      From communication sent by the respondent to the<br \/>\n<span class=\"hidden_text\">                                                   4<\/span><\/p>\n<p>              petitioner dated 21.3.2006 even it is clear that there is no<\/p>\n<p>              dispute that there is arbitration clause in the contract. Even as<\/p>\n<p>              per the respondents there are some of the claims which are not<\/p>\n<p>              covered under the alleged &#8220;excepted matters&#8221; so as to deny the<\/p>\n<p>              appointment of arbitrator. It is disputed by the petitioner that<\/p>\n<p>              any of the claim falls in the category of &#8220;excepted matters&#8221; and<\/p>\n<p>              whether all claim is falling in the said category of &#8220;excepted<\/p>\n<p>              matters&#8221; can also be decided by the arbitrator. It appears that<\/p>\n<p>              respondents by communication dated 21.3.2006 have decided<\/p>\n<p>              some    of   the   core   issue   for    which   petitioner   prayed   for<\/p>\n<p>              appointment of arbitrator that clearly demonstrate that there is<\/p>\n<p>              dispute between the parties in the matter where by the contract<\/p>\n<p>              provides for settlement of dispute by the arbitral proceedings.<\/p>\n<p>                     Since the respondents failed to appoint the arbitrator<\/p>\n<p>              within time, therefore, this petition is allowed                and the<\/p>\n<p>              respondents are directed to appoint the arbitrator within a period<\/p>\n<p>              of two months from today by keeping in mind clause 64(3)(a)(iii)<\/p>\n<p>              of   the General     Conditions     of    Contract    Regulations      and<\/p>\n<p>              Instructions for Tenders and Standard Forms of Contract and the<\/p>\n<p>              arbitrator shall decide the matter expeditiously.<\/p>\n<p>                                                               (PRAKASH TATIA), J.\n<\/p>\n<p>c.p.goyal\/-<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rajasthan High Court &#8211; Jodhpur M\/S Indeera Builders (P) Ltd vs Union Of India &amp; Ors on 19 May, 2009 1 S.B. Arbitration Application No.59\/2007 M\/s. Indeera Builders (petitioner) Ltd. vs Union of India &amp; Ors DATE OF ORDER: 19.5.2009 HON&#8217;BLE MR. PRAKASH TATIA, J. Mr. SD Vyas, for the petitioner. Mr. Kamal Dave, for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,19],"tags":[],"class_list":["post-119860","post","type-post","status-publish","format-standard","hentry","category-high-court","category-rajasthan-high-court-jodhpur"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S Indeera Builders (P) Ltd vs Union Of India &amp; Ors on 19 May, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-indeera-builders-p-ltd-vs-union-of-india-ors-on-19-may-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Indeera Builders (P) Ltd vs Union Of India &amp; 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