{"id":168318,"date":"2002-09-17T00:00:00","date_gmt":"2002-09-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/haryana-telecom-ltd-vs-union-of-india-uoi-and-anr-on-17-september-2002"},"modified":"2015-11-23T20:00:40","modified_gmt":"2015-11-23T14:30:40","slug":"haryana-telecom-ltd-vs-union-of-india-uoi-and-anr-on-17-september-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/haryana-telecom-ltd-vs-union-of-india-uoi-and-anr-on-17-september-2002","title":{"rendered":"Haryana Telecom Ltd. vs Union Of India (Uoi) And Anr. on 17 September, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Haryana Telecom Ltd. vs Union Of India (Uoi) And Anr. on 17 September, 2002<\/div>\n<div class=\"doc_author\">Author: K Gupta<\/div>\n<div class=\"doc_bench\">Bench: K Gupta<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> K.S. Gupta, J. <\/p>\n<p> 1. The petitioner filed this petition under Section<br \/>\n11(6) of the Arbitration and Conciliation Act, 1996 (for<br \/>\nshort &#8216;the Act&#8217;), interalia, alleging that it is engaged in<br \/>\nthe manufacture of Polythene Insulated Jelly Filled<br \/>\ntelephone cables. Pursuant to tender No. 14-21\/94-MMT (MMS)<br \/>\ndated 30th November 1994 for procurement of 352 LCKM<br \/>\nunderground cables in various sizes and types floated by<br \/>\nthe respondents the petitioner submitted bid(s) which was<br \/>\naccepted by respondents. As per terms of contract the<br \/>\npetitioner was entitled to a minimum order to the extent of<br \/>\n20% of the tender quantity. Tender Evaluation Committee<br \/>\nevaluated the tender differently and finalised the<br \/>\nallocation of order to petitioner to the extent of 27.60<br \/>\nLCKM leaving a shortfall of 8.4 LCKM. Further, the<br \/>\nrespondent withheld releasing 1.04 LCKM out of purchase<br \/>\norder of 22.34 LCKM again leaving shortfall of 1.04 LCKM<br \/>\nmaking the total shortfall of 14.7 LCKM. It is alleged<br \/>\nthat the action of respondents in not placing purchase<br \/>\norder for the balance quantity was wholly malafide. So,<br \/>\nthe petitioner filed CWP No. 1200\/97 in this court but in<br \/>\nview of arbitration clause appearing in tender documents<br \/>\nthe same was disposed of by the order dated 17th February<br \/>\n2000 with direction to the respondents that as and when the<br \/>\npetitioner invokes arbitration clause, an arbitrator would<br \/>\nbe appointed. Vide letter dated 26th February, 2000 sent<br \/>\nthrough lawyer the petitioner invoked the arbitration<br \/>\nclause. By the letter dated 25th April 2000 the<br \/>\nrespondents conveyed the appointment of<br \/>\nK.L. Jain, G.M. (Development), Haryana Telecom Circle as<br \/>\narbitrator to decide the disputes. Vide letter of May 2000<br \/>\nthe respondents informed the petitioner that since K.L. Jain<br \/>\nhas expressed his unwillingness to act as arbitrator, Ram<br \/>\nKumar, G.M. (A &amp; P) UP (W) Telecom circle, Dehra Dun has<br \/>\nbeen appointed in his place. Vide letter dated 27th June<br \/>\n2000 this arbitration asked the petitioner to file claims<br \/>\nwhich the petitioner submitted on 27th October 2000. As<br \/>\nthe said arbitrator did not held even a single hearing<br \/>\nafter the filing of claims, the petitioner vide letter<br \/>\ndated 14th February 2001 requested him to proceed in the<br \/>\nmatter. It appears that said arbitrator was not interested<br \/>\nto continue as arbitrator. So, vide letter dated 23rd<br \/>\nMarch 2001 the petitioner requested Director Genera,<br \/>\nDepartment of Telecommunication, New Delhi, to appoint<br \/>\nanother person to act as arbitrator. Despite receipt of<br \/>\nabove letter the said Authority has failed to appoint<br \/>\nanother arbitrator. It was prayed that an independent<br \/>\narbitrator preferably a retired Judge of this court may be<br \/>\nappointed as arbitrator to decide the disputes.\n<\/p>\n<p> 2. In the short reply filed on the affidavit of<br \/>\nR.N. Bhagat, Assistant Director General (ST) it is stated<br \/>\nthat a decision has been taken on 4th October 2001 to<br \/>\nappoint R.K. Tyagi, G.M. (Dev), Haryana Telecom circle in<br \/>\nplace of Ram Kumar as arbitrator and the petition has,<br \/>\nthus, been rendered infructuous.\n<\/p>\n<p> 3. In the rejoinder filed to reply on the affidavit<br \/>\nof P.K. Sharma, Dy. Manager (Legal) of petitioner, it is<br \/>\nstated that petitioner is not agreeable to the appointment<br \/>\nof R.K. Tyagi as arbitrator as he has been monitoring OMP<br \/>\nNo. 251\/01 filed by the Department against petitioner<br \/>\ncompany challenging the award dated 7th August 2000 made by<br \/>\nJustice P.K. Bahri (Retd).\n<\/p>\n<p> 4. Order dated 3rd May 2002 notices the statement<br \/>\nmade by Sh. Jayant Bhushan for respondents that Ram Narain,<br \/>\nG.M. (Vigilance) MTNL has now been appointed as arbitrator in<br \/>\nplace of R.K. Tyagi. This order further notices the<br \/>\nstatement made by Sh. S.K. Gupta for petitioner that<br \/>\npetitioner is also not agreeable to the appointment of Ram<br \/>\nNarain as arbitrator. Thereafter on 5th September 2002 the<br \/>\npetitioner filed affidavit of said P.K. Sharma opposing the<br \/>\nappointment of Ram Narain alleging that he has been<br \/>\nactively participating before Justice P.K. Bahri (Retd) in<br \/>\ntwo arbitration matters arising out of Suit No. 163 and 164<br \/>\nof 1997 on behalf of the Department and this gives rise for<br \/>\njustificable doubt as to his independency\/impartiality.<br \/>\nIt is further alleged that the Appointing Authority did not<br \/>\nhave jurisdiction and power to appoint an arbitration during<br \/>\nthe pendency of present petition.\n<\/p>\n<p> 5. Main thrust of argument advanced by Sh. S.K. Gupta<br \/>\nwas that as R.K. Tyagi was appointed as arbitrator much<br \/>\nbeyond the period of 30 days of the service by the<br \/>\npetitioner of notice dated 23rd March 2001, this court<br \/>\nalone had the jurisdiction to appoint arbitrator. In<br \/>\nsupport of submission, my attention was drawn to the<br \/>\nprovision contained in Sub-sections (5) and (6) of Section<br \/>\n11 of the Act as also the decision in  <a href=\"\/doc\/451518\/\">Datar Switchgears Ltd.<br \/>\nv. Tata Finance Ltd. and Anr.,<\/a> (2000) 8 SCC 151.<br \/>\nHowever, the submission is without any merit. The<br \/>\nprovisions of said Section 11(5) and (6) will not be<br \/>\nattracted as admittedly Ram Kumar was in position as<br \/>\narbitrator on the date notice dated 23rd March, 2001<br \/>\ndemanding appointment of arbitrator was issued by the<br \/>\npetitioner. In case Ram Kumar who has been replaced by<br \/>\nR.K. Tyagi and again by Ram Narain, had failed to act<br \/>\nwithout undue delay, as alleged, the remedy open to<br \/>\npetitioner was to file petition under Section 14(1)(a) of<br \/>\nthe Act for his removal. Further, appointment of Ram<br \/>\nNarain as arbitrator on 19th April, 2002 can be assailed by<br \/>\ntaking resort to challenge procedure as provided in Section<br \/>\n13 of the Act alone and not in present petition. Datar<br \/>\nSwitchgears&#8217; case (supra) has no applicability to the facts<br \/>\nof this case.\n<\/p>\n<p> 6. Consequently, the petition is dismissed being<br \/>\nwithout merit. No order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Haryana Telecom Ltd. vs Union Of India (Uoi) And Anr. on 17 September, 2002 Author: K Gupta Bench: K Gupta JUDGMENT K.S. Gupta, J. 1. The petitioner filed this petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short &#8216;the Act&#8217;), interalia, alleging that it is engaged in the [&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":[14,8],"tags":[],"class_list":["post-168318","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Haryana Telecom Ltd. vs Union Of India (Uoi) And Anr. on 17 September, 2002 - 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\/haryana-telecom-ltd-vs-union-of-india-uoi-and-anr-on-17-september-2002\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Haryana Telecom Ltd. vs Union Of India (Uoi) And Anr. on 17 September, 2002 - Free Judgements of Supreme Court &amp; 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