Ravi Malimath, J
1. The petitioner is before this Court, in this petition under Section 11 of the Arbitration and Conciliation Act, 1996 (for short “the Actâ€), seeking
appointment of two arbitrators to resolve the disputes that have arisen between the parties.
2. Learned counsel for the petitioner contends that an agreement was executed between the petitioner and the respondent. In respect of the said
agreement, certain disputes have arisen between the parties and as such the petitioner claims that, since the amount involved is more than Rs.
3,00,000/-, two arbitrators (one of the rank of Chief Engineer U.K.P.W.D. and the other to be an Officer of the Judicial Service appointed by the
Uttarakhand Government) be appointed to resolve the disputes that have arisen between the parties. In that regard, Clause 32(c) of the general
condition of contract, which relates to Arbitration, is referred to by the learned counsel for the petitioner. The said clause provides for settlement of
disputes through Arbitrator. Clause 32(c) of the general condition of contract reads as under :-
32(c) Except where otherwise provided in the Contract, all questions and disputes relating to meaning of the specification, designs, drawing
& instruction herein before mentioned & to the quality of workmanship or materials used on the work or as to any other question, claim right
or rates for extra items sanctioned & decided or not by the competent authority under the conditions of this contract matter or thing
whatsoever in any way arising out of or relating to contract, Designs, Drawing, Specification, estimates, instructions, order on these
conditions or otherwise concerning the workj 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 or persons appointed by the Chief
Engineer, public works department UTTARAKHAND. It will be no objection to any such appointments that the arbitrator so appointed is a
Govt. servant, he had to deal with the matters to which the Contract relates & that In the course of his duties as Govt. Servant, he had
expressed views on all or any of the matters in dispute or difference. The arbitrator to whome the matter is originally or subsequently
referred being incapracited to act the Chief Engineer, shall appoint another person toact as arbitrator in accordance with theteras of the
Contract. It is also a term of this contract that no person other than a person appointed by the Chief Engineer of the U.K.P.W.D as
aforesaid, shall act as arbitrator & if for any reason that is not possible, the matter is not to be referred to the time for making & publishing
the award.
Subject as aforesain the provision of Arbitration act 1984, or any statuory modification or reenactment thereof & rules made the under & for
the time being inforce shall apply to arbitration proceedings under this clause.
The sole arbitrator(s) to be appointed by the Chief Engineer shall be of the status given below.
1. For Claims or amounts in dispute or not over Rs. 5,000/- in the case of work order & in case of Contracts accepted by any assistant/Distt.
Engineer/Sub Divisional
An Executive Engineer of U.K.P.W.D.
2. For claims or amounts in dispute of over Rs. 5,000/- but not over Rs. 1,00,000/-
Superintending Engineer U.K.P.W.D.
3. For claims or amounts in dispute aggregating to majore than Rs. 1,00,000/- but not more than Rs. 3,00,000/-.
Chief Engineer Uttarakhand Govt.
4. For claims or amounts in dispute aggregation to more than 3,00,000/-
Two arbitrator 1 of the rank of Chief Engineer U.K.P.W.D. other office of Judicial Service appointed by the Uttarakhand Govt.
All disputes between the parties to the contract arising out of & relation to the Contract shall after written notice by the either to the Contract
to the other party, be referred to arbotration as above. Unless the parties otherwise agree such reference shall not take place untill after the
completion, alleged completion, alleged, complaent or abandonment of work or the determination of the Contract. The venue of
arbitration(s) in his/their sole discretion. Any suit or application for the enibrceant of this arbitration clause shall be file at competant court at
Nainital no other court of any other District of the Uttarakhand/U.K. or outside Uttrakhand U.K. shall have any jurisdiction in the matter.
The award the arbitrator, shall be final & binding on both parties to the Contract.
4. Shri Pradeep Joshi, learned additional chief standing counsel for the State of Uttarakhand-respondents, has no objection for appointment of two
arbitrators, as provided under Clause 32(c).
5. Hence, in terms of Clause 32(c) of the general condition of contract, Shri H.K. Upreti, retired Chief Engineer, resident of House No. 142, South
Vanasthali, Ballupur Chowk, Dehradun is appointed as the first arbitrator and Shri Balbir Prasad Gupta, retired District Judge, resident of HIG 142,
Indirapuram, MDDA Colony, GMS Road, Dehradun is appointed as the second arbitrator to resolve the disputes between the parties, after their
disclosure in writing is obtained in terms of Section 11(8) of the Act; and only after receipt thereof shall their appointment, as arbitrators, come into
force.
6. On they giving consent to arbitrate the disputes between the parties, Shri H.K. Upreti, retired Chief Engineer, resident of House No. 142, South
Vanasthali, Ballupur Chowk, Dehradun and Shri Balbir Prasad Gupta, retired District Judge, resident of HIG 142, Indirapuram, MDDA Colony, GMS
Road, Dehradun, shall enter reference, and shall pass an award in accordance with law. The learned arbitrators shall fix their fees in consultation with
both the parties.
7. The arbitration application is disposed off accordingly.
