JUDGEMENT
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(1.) Delay condoned as appellants were pursuing the remedy by way of
writ petition till 14.12.2005. Leave granted.
FACTS (M.K. ABRAHAM & CO.)
(2.) A section of the work relating to NH-49 was awarded to the appellant
under letter of acceptance dated 1.12.1999 issued by the second respondent
[Project Director (SE), National Highway (ADB), Circle Edappally,
Cochin]. A formal contract agreement was executed by them on the same
day. By letter dated 9.10.2001, the appellant-contractor called upon the
Executive Engineer, National Highways (Roads) Division to pay certain
amounts as compensation for the losses caused on various accounts. The
Executive Engineer denied the claim by a reply sent in December, 2001
contending that there was a full and final settlement of the claims by paying
the amounts due under the final bill. Being dissatisfied with the said
rejection, the appellant by notice dated 1.4.2002 called upon the Executive
Engineer to refer the disputes in regard to its claims aggregating to
Rs.42,26,432/58 to arbitration. As there was no response, the appellant by
letter dated 26.8.2002 nominated his arbitrator and called upon the second
respondent to nominate the department's arbitrator in terms of the contract
so that the Director-General (Road Development), Ministry of Surface &
Transport, could nominate the Chairman - Arbitrator. The second respondent
failed to comply. Therefore, the appellant by letter dated 28.10.2002
requested the Director-General to appoint the arbitrator on behalf of the
employer as also the Chairman of the Arbitration Committee. As the
Director-General also failed to comply, the appellant filed an application
dated 9.4.2003 under section 11 of the Arbitration & Conciliation Act, 1996
(for short 'the Act'). The designate of the Chief Justice dismissed the
application by order dated 19.12.2003.
FACTS (VIJAY CONSTRUCTIONS)
(3.) A section of the work relating to NH-49 was awarded to the appellant
under letter of acceptance dated 7.9.2000 issued by the second respondent. A
formal contract agreement was executed on 26.9.2000 between them. The
work was completed on 30.4.2001. According to Appellant, the Executive
Engineer informed him that unless it gave a no claim certificate, even the
admitted dues would not be released. Under such coercion, it gave such a
certificate on 23.1.2002, so that it can receive at least the admitted amounts.
Immediately on receiving the admitted dues, the appellant claims to have
informed the respondents by letter dated 2.2.2002 that it signed the no claim
undertaking under coercion and therefore, it had no legal effect. It also
called upon the respondent to redress its grievances and claims. As there was
no response, the appellant by notice dated 19.8.2002 called upon the
Executive Engineer, who was the "Engineer" under the contract to give his
decision on its claims, in terms of the contract. As the "Engineer" failed to
do so within 60 days, the appellant wrote to the Director-General (Road
Development), Ministry of Surface & Transport on 26.10.2002, to appoint a
sole Arbitrator to adjudicate upon the disputes. The appellant filed a petition
under section 11 of the Arbitration & Conciliation Act, 1996 (for short 'the
Act') contending that the contract between the parties provides for
settlement of disputes by arbitration and that in spite of appellant taking
necessary pre-arbitration steps in terms of the arbitration clause, there was
no compliance. The designate of the Chief Justice dismissed the application
by order dated 19.12.2003.
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