- (1.) By this application Under Section 11(6) of the Arbitration and Conciliation Act, 1996, the Petitioners seek appointment of an Arbitrator to go into the disputes and differences that have arisen with the Respondents from a contract/agreement signed on 9th June, 2008 for "improvement/upgradation of Shivaji Stadium", particularly "construction of Sport Facility Block, Hockey Stadium, Parking, Lifts, etc.". After the said work was awarded to the Petitioner No. 1 by resolution of the Respondent - Municipal Council dated 28th April, 2008, the Petitioner No. 1 claims to have appointed the second Petitioner, an Indian Company as its agent pursuant to Clause 18 of the General Conditions of Contract. It appears that an issue with regard to unauthorized sub-letting of the contract work in favour of the second Petitioner arose which led to a criminal case being registered by the Central Bureau of Investigation (CBI), inter alia, against the first Petitioner. As a sequel to the aforesaid criminal proceeding, the bank account of the first Petitioner was frozen and resultantly the contract was also rescinded and attempts were made to invoke the bank guarantees that were furnished in connection with the work. Be that as it may, what transpires is that though, according to the Petitioner No. 1, the works were executed, payment of substantial amounts are due and are not forthcoming. In the above circumstances, the Petitioner No. 1 had addressed a communication dated 13th December, 2013 to the Chairperson of the New Delhi Municipal Council, invoking the arbitration Clause contained in the Agreement dated 9th June, 2008 (Clause 25), for appointment of an Arbitrator as agreed to by and between the parties in the aforesaid arbitration Clause.
(2.) As no response has been forthcoming, the present application has been filed.
(3.) The Respondents have filed their counter and have opposed the claims made by the Petitioners and have also contended that the arbitration proceeding should not commence until the criminal case, instituted by the CBI is finalized.;