{"id":212837,"date":"2000-04-24T00:00:00","date_gmt":"2000-04-23T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/k-l-khanna-sons-vs-uoi-anr-on-24-april-2000"},"modified":"2017-02-02T02:21:16","modified_gmt":"2017-02-01T20:51:16","slug":"k-l-khanna-sons-vs-uoi-anr-on-24-april-2000","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/k-l-khanna-sons-vs-uoi-anr-on-24-april-2000","title":{"rendered":"K.L. Khanna & Sons vs Uoi & Anr. on 24 April, 2000"},"content":{"rendered":"
Delhi High Court<\/div>\n
K.L. Khanna & Sons vs Uoi & Anr. on 24 April, 2000<\/div>\n
Author: M Mudgal<\/div>\n
Bench: M Mudgal<\/div>\n<\/p>\n
<\/pre>\n
ORDER<\/p>\n
Mukul Mudgal, J.<\/p>\n
1.     This is a petition on behalf of the petitioner under Section 11 of the Arbitration & Conciliation Act, 1996(hereinafter referred to as the  ‘Act’) seeking a direction to the respondents to file the original of  Arbitration Agreement in this Court & also an Order of reference of the disputes\/claims enumerated in Para 7 (C) (i) to (ix) of the petition for arbitration.\n<\/p>\n
2.   The petitioner is a contractor working with the Union of India and has entered  into  contract for the construction work of C\/o  School  for  crop protection  at  IARI, Pusa, New Delhi (J.L.M. Blocks) under  Agreement  No. 6EE\/CDIV\/1992-93 with the respondent No. 1.\n<\/p>\n
3.   Clause  25 of the contract Agreement provided for the arbitration  and reads as follows:\n<\/p>\n
     “25.  Except where otherwise provided in the contract  all  questions and disputes relating to the meaning of the  specifications designs, drawings and instructions hereinbefore mentioned and  as to the quality of workmanship of materials used on the work or as to any other questions claim, right matter or thing whatsoever in any  way  arising  out of or relating to  the  contract  designs, drawings, specifications, estimates instructions orders or  these conditions or otherwise concerning the works of or the  execution or  failure  to  execute  the same  whether  arising  during  the progress  of  the  work or after the  completion  or  abandonment thereof  shall be referred to the sole arbitration of the  person appointed by the Chief Engineer C.P.W.D. in charge of the work at the time of dispute or if there be no Chief Engineer the administrative  head of the said C.P.W.D. at the time of  such  appointment.  It will be no objection to any such appointment  that  the arbitrator  so appointed is a Government servant that he  has  to deal  with the matters to which the contract relates and that  in the  course of his duties as Government servant he has  expressed views on all or any of the matters in dispute or difference.  The arbitrator to whom the matter is originally referred being transferred  or  vacating his office or being unable to  act  for  any reason,  such Chief Engineer or administrative head as  aforesaid at the time of such transfer, vacation of office or inability  to act, shall appoint another person to act as arbitrator in accordance with the terms of the contract. Such persons shall be  entitled to proceed with the reference from the stage at which it was left by his predecessor. It is also a term of this contract  that no person other than a person appointed by such Chief Engineer or administrative  head of the C.P.W.D. as aforesaid should  act  as arbitrator  and  if  for any reason, that is  not  possible,  the matter is not to be referred to arbitration at all. In all  cases where the total amount of all the claim in dispute is Rs.75,000\/- (Rs. Seventy Five thousand only) and above, the arbitrator  shall give reasons for the award.\n<\/p><\/blockquote>\n
     Subject as aforesaid the provisions of the Arbitration Act, 1940, or  any  statutory modification or re-enactment thereof  and  the rules made thereunder and for the time being in force shall apply to the arbitration under this clause.\n<\/p><\/blockquote>\n
     It is a term of the contract that the party invoking  arbitration shall specify the dispute or disputes to be referred to  arbitration  under  this  clause together with  the  amount  or  amounts claimed in respect of each such disputes.\n<\/p><\/blockquote>\n
     It is also a term of the contract that the contractor(s)  do\/does not make any demand for arbitration in respect of any claim(s) in writing within 90 days of receiving the intimation from the Govt. that  the final bill is ready for payment, the claim of the  contractor(s)  will  be deemed to have been  waived  and  absolutely barred  and  the Govt. shall be discharged and  released  of  all liabilities under the contract in respect of these claims.\n<\/p><\/blockquote>\n
     The  arbitrator(s)  may  from time to time with  consent  of  the parties enlarge the time for making and publishing the award.\n<\/p><\/blockquote>\n
     The decision of the Superintending Engineer regarding the quantum  of reduction as well as justification thereof in respect of rates  or  sub standard work which may be decide to be accepted will  be final and would not be open to arbitration.”\n<\/p><\/blockquote>\n
4.   Certain  disputes having arisen which according to the petitioner  are to be settled in accordance with the provisions of Clause 25 of the  Agreement.  Accordingly, the petitioner has invoked the said Arbitration  Clause by  letter dated 25.4.1996 seeking reference of the 16 claims\/disputes  for arbitration. In the reply filed on behalf of the respondents, the main plea appears  to be that since the bill has already been finalised and  accounts of the petitioner settled, the disputes cannot be referred for arbitration.\n<\/p>\n
5.   The learned counsel for the petitioner has relied upon the judgment of this  Court  reported as Nitin Construction Co. Vs.  National  Agricultural Marketing Federation of India Ltd.  to contend that in view of  the law laid down in the aforesaid judgment and the  judgment  followed therein,  i.e., Union of India Vs. L.K. Ahuja , this  peti-\n<\/p>\n
tion should be allowed.\n<\/p>\n
6.   The Hon’ble Supreme Court in Union of India & Anr. Vs. M\/s L.K.  Ahuja & Co.  held that even if the final bill was settled and  no claim declaration was given, the right to get further payment gets weakened but  the  claim subsists and whether it does subsist is a matter  which  is arbitrable.  The  law laid down in the said judgement  covers  the  present dispute also.\n<\/p>\n
7.   Accordingly,  the petition is allowed and the respondents  are  hereby directed  to file the original arbitration agreement in this  Court  within six  weeks from today & refer all the disputes\/claims mentioned in  Para  7 (C)  i) to xvi) of the petition for the consideration by a Sole  Arbitrator within  10 weeks from today. The respondent No.2 is directed to appoint  an Arbitrator in terms of the Arbitration Act within a period of 10 weeks from today,  failing which the independent arbitrator is liable to be  appointed by this Court.\n<\/p>\n
8.     The petition is accordingly disposed of.<\/p>\n","protected":false},"excerpt":{"rendered":"
Delhi High Court K.L. Khanna & Sons vs Uoi & Anr. on 24 April, 2000 Author: M Mudgal Bench: M Mudgal ORDER Mukul Mudgal, J. 1. This is a petition on behalf of the petitioner under Section 11 of the Arbitration & Conciliation Act, 1996(hereinafter referred to as the ‘Act’) seeking a direction to the […]<\/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-212837","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"\nK.L. 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