{"id":168288,"date":"2008-02-01T00:00:00","date_gmt":"2008-01-31T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/m-n-b-nair-vs-the-fact-engineering-and-design-on-1-february-2008"},"modified":"2016-08-07T21:03:22","modified_gmt":"2016-08-07T15:33:22","slug":"m-n-b-nair-vs-the-fact-engineering-and-design-on-1-february-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/m-n-b-nair-vs-the-fact-engineering-and-design-on-1-february-2008","title":{"rendered":"M.N.B.Nair vs The Fact Engineering And Design on 1 February, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">M.N.B.Nair vs The Fact Engineering And Design on 1 February, 2008<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nAR No. 19 of 2007()\n\n\n1. M.N.B.NAIR,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. THE FACT ENGINEERING AND DESIGN\n                       ...       Respondent\n\n                For Petitioner  :SRI.K.L.VARGHESE\n\n                For Respondent  :SRI.A.M.SHAFFIQUE\n\nThe Hon'ble MR. Justice PIUS C.KURIAKOSE\n\n Dated :01\/02\/2008\n\n O R D E R\n                         PIUS C. KURIAKOSE, J.\n\n\n                         A.R. NO. 19   OF 2007\n\n\n                DATED THIS THE 1st February 2008\n\n\n                                    ORDER\n<\/pre>\n<p>      This   application   has   been   filed   under   Section   11(6)   of   the<\/p>\n<p>Arbitration   and  Conciliation  Act,   1996     seeking    appointment   of<\/p>\n<p>an   Arbitrator   in   accordance   with   law   by   a   Contractor   to   the<\/p>\n<p>respondent  company in respect of  the work of &#8220;Implementation<\/p>\n<p>of  Hazardous  Waste   landfill   for  FACT  &#8211;  Primary  and  Secondary<\/p>\n<p>Leachate   Collection   Layers&#8221;   under   Work   Order   No.32180-C0506<\/p>\n<p>dated  13-12-2005   which  was   followed  by  execution  of   a  formal<\/p>\n<p>agreement.     It   is   submitted   that   as   per   the   contract,   the   work<\/p>\n<p>costing   Rs.13,55,000\/- had to be  completed within four months<\/p>\n<p>from  the date of  handing over  the site, whereas the respondent<\/p>\n<p>was not  able to handover the site  for more than an year.  In the<\/p>\n<p>meanwhile  whatever materials  to be supplied had been supplied<\/p>\n<p>by   the   applicant.   Undisputedly,   the   respondent   could   not   hand<\/p>\n<p>over   the   site   or   give   facilities   to   do   the   work   since   another<\/p>\n<p>agency   who had to do part of the job had not done so.   In the<\/p>\n<p><span class=\"hidden_text\">A.R.NO. 19\/2007                           -2-<\/span><\/p>\n<p>meanwhile, the  cost of construction increased  disproportionately<\/p>\n<p>high and the applicant  sought  for enhancement of rates. Though<\/p>\n<p>the respondent convened a meeting and gave an impression that<\/p>\n<p>enhancement   of   rates   would   be   recommended   ultimately,   the<\/p>\n<p>request   for   enhancement   of   rates   was   turned   down   and   the<\/p>\n<p>contract   was   terminated     followed   by     encashment   of   Bank<\/p>\n<p>Guarantee amount of Rs.1,35,500\/- and withholding   of final bill<\/p>\n<p>amount of Rs.5,83,060\/-.   The disputes having thus arisen     are<\/p>\n<p>liable  to   be   settled     in   arbitration.     Article   41     of   the   Proforma<\/p>\n<p>Contract is an arbitration clause.  Article 41  which is extracted in<\/p>\n<p>the       application   would     show   that     the   Chairman   &amp;   Managing<\/p>\n<p>Director   of   the   respondent     Company   is   the   nominated<\/p>\n<p>Arbitrator.   Since   the   respondent   was   not   prepared   to   refer   the<\/p>\n<p>dispute  in arbitration in that  regard, the applicant  has invoked<\/p>\n<p>the appointment procedure contemplated by Section 11(6) of the<\/p>\n<p>Arbitration and Conciliation Act.       Even though several chances<\/p>\n<p>were given   to the respondent for filing counter affidavit, till this<\/p>\n<p>moment the counter affidavit has not been filed.  The averments<\/p>\n<p>in the application stand established.\n<\/p>\n<p><span class=\"hidden_text\">A.R.NO. 19\/2007                          -3-<\/span><\/p>\n<p>      The   result   is   that   the     Arbitration   Request   will   stand<\/p>\n<p>allowed.  Sri. S.Sainudheen, the retired District &amp; Sessions Judge<\/p>\n<p>is   appointed   as   Arbitrator   to   settle   the   disputes   between   the<\/p>\n<p>parties which are subject matters of Annexure-A1   claim notice.\n<\/p>\n<p>The  Arbitrator  will  also  settle   the counter  claims, if  any, which<\/p>\n<p>were   raised by the respondent through   their claim   statement.\n<\/p>\n<p>The   Arbitrator   will   enter   on   reference     at   his   earliest   and   pass<\/p>\n<p>award without undue delay.\n<\/p>\n<p>                                                PIUS C. KURIAKOSE, JUDGE<\/p>\n<p>ks<\/p>\n<p><span class=\"hidden_text\">A.R.NO. 19\/2007                         -4-<\/span><\/p>\n<p>      This   application   has   been   filed   under   Section   11(6)   of   the<\/p>\n<p>Arbitration and Conciliation Act, 1996  to appoint an Arbitrator in<\/p>\n<p>accordance   with   law   by   the   applicant,   who   is   Contractor   to   the<\/p>\n<p>respondent  company in respect of  the work of &#8220;Implementation<\/p>\n<p>of  Hazardous  Waste   landfill   for  FACT  &#8211;  Primary  and  Secondary<\/p>\n<p>Leachate   Collection   Layers&#8221;   under   Work   Order   No.32180-C0509<\/p>\n<p>dated   19-1-2006   which   was   followed   by   execution   of   a   formal<\/p>\n<p>agreement.     It   is   submitted   that   as   per   the   contract,   the   work<\/p>\n<p>costing   Rs.14,93,500\/- had to be  completed within four months<\/p>\n<p>form the date of  handing over  the site, whereas the respondent<\/p>\n<p>was not  able to handover the site  for more than a year.  In the<\/p>\n<p>meanwhile  whatever materials  to be supplied had been supplied<\/p>\n<p>by   the   applicant.   Undisputedly,   the   respondent   could   not   hand<\/p>\n<p>over   the   site   or   give   facilities   to   do   the   work   since   another<\/p>\n<p>agency   who had to do part of the job had not done so.   In the<\/p>\n<p>meanwhile, the  cost of construction increased  disproportionately<\/p>\n<p><span class=\"hidden_text\">A.R.NO. 19\/2007                           -5-<\/span><\/p>\n<p>high and the applicant  sought  for enhancement of rates. Though<\/p>\n<p>the respondent convened a meeting and gave an impression that<\/p>\n<p>enhancement   of   rates   would   be   recommended   ultimately,   the<\/p>\n<p>request   for   enhancement   of   rates   was   turned   down   and   the<\/p>\n<p>contract   was   terminated     followed   by     encashment   of   Bank<\/p>\n<p>Guarantee amount of Rs.1,49,3,50\/- and withholding  of final bill<\/p>\n<p>amount of Rs.1,46,296\/-.   The disputes having thus arisen     are<\/p>\n<p>liable  to   be   settled     in   arbitration.     Article   41     of   the   Proforma<\/p>\n<p>Contract is an arbitration clause.   Article 41   is extracted in the<\/p>\n<p>application   which   would     show   that     the   Chairman   &amp;   Managing<\/p>\n<p>Director   of   the   respondent     Company   is   nominating     Arbitrator.\n<\/p>\n<p>Since   the   respondent   was   not   prepared  to   refer   the   dispute    in<\/p>\n<p>arbitration   in   that     regard,   the   applicant     has   invoked     the<\/p>\n<p>appointment   procedure   contemplated   by   Section   11(6)   of   the<\/p>\n<p>Arbitration and Conciliation Act.       Even though several chances<\/p>\n<p>were given   to the respondent for filing counter affidavit, till this<\/p>\n<p>moment the counter affidavit has not been filed.  The averments<\/p>\n<p>in the application stands established.\n<\/p>\n<p>       The   result   is   that   the     Arbitration   Request   will   stand<\/p>\n<p><span class=\"hidden_text\">A.R.NO. 19\/2007                         -6-<\/span><\/p>\n<p>allowed.  The retired District &amp; Sessions Judge&#8230;&#8230;..  is appointed<\/p>\n<p>as   Arbitrator   to   settle   the   dispute   between   the   parties   which   is<\/p>\n<p>subject matter of Annexure-A1   claim notice.   The Arbitrator will<\/p>\n<p>also settle   the counter claims, if any, which were  raised by the<\/p>\n<p>respondent through in their claim  statement.  The Arbitrator will<\/p>\n<p>enter  on  reference    at  his  earliest  and pass   the award without<\/p>\n<p>undue delay.\n<\/p>\n<p>                                                PIUS C. KURIAKOSE, JUDGE<\/p>\n<p>ks<\/p>\n<p><span class=\"hidden_text\">A.R.NO. 19\/2007    -7-<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court M.N.B.Nair vs The Fact Engineering And Design on 1 February, 2008 IN THE HIGH COURT OF KERALA AT ERNAKULAM AR No. 19 of 2007() 1. M.N.B.NAIR, &#8230; Petitioner Vs 1. THE FACT ENGINEERING AND DESIGN &#8230; Respondent For Petitioner :SRI.K.L.VARGHESE For Respondent :SRI.A.M.SHAFFIQUE The Hon&#8217;ble MR. Justice PIUS C.KURIAKOSE Dated :01\/02\/2008 O [&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":[8,21],"tags":[],"class_list":["post-168288","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M.N.B.Nair vs The Fact Engineering And Design on 1 February, 2008 - 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\/m-n-b-nair-vs-the-fact-engineering-and-design-on-1-february-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M.N.B.Nair vs The Fact Engineering And Design on 1 February, 2008 - Free Judgements of Supreme Court &amp; 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