GEO MILLER & CO. PVT. LTD. Vs. CHAIRMAN, RAJASTHAN VIDYUT UTPADAN NIGAM LTD
LAWS(SC)-2019-9-4
SUPREME COURT OF INDIA (FROM: RAJASTHAN)
Decided on September 03,2019

Geo Miller And Co. Pvt. Ltd. Appellant
VERSUS
Chairman, Rajasthan Vidyut Utpadan Nigam Ltd Respondents

JUDGEMENT

MOHAN M.SHANTANAGOUDAR,J. - (1.) The appeals arise out of the common judgement dated 25.1.2007 of the High Court of Rajasthan at Jaipur Bench dismissing the three Arbitration Applications Nos. 25/2003, 27/2003 and 28/2003 ('Arbitration Applications') filed by the appellant under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the 1996 Act') seeking appointment of an arbitrator for adjudication of the disputes between the common appellant and the respondent in these appeals.
(2.) The facts giving rise to these appeals are as follows: The respondent had floated tenders for execution of work on a water treatment plant. Three work orders dated 7.10.1979, 4.4.1980 and 3.5.1985 were assigned in favour of the appellant. The three Notice Inviting Tender ('NIT') documents in respect of these work orders constituted the terms and conditions of the three separate contracts between the parties. The three contracts had a common arbitration clause as follows (relevant part): "i. If at any time any question/dispute/difference whatsoever arises between the purchaser and the supplier, upon or in relation to the contract, either party may forthwith give to the other once question(s), disputes or difference and the same shall be referred to the Chairman, Rajasthan State Electricity Board, Jaipur or any person appointed by him for the purpose (hereinafter referred to as Arbitrator). Such a reference to the arbitrator/arbitrators shall be deemed to be a submission to the Arbitrator within the meaning of the Indian Arbitration Act, 1940 and statutory modifications thereof."
(3.) The appellant's case is that the respondent failed to make the payments due to them under the three contracts. Till 1997, the appellant was involved in discussions with the respondents in respect of the outstanding payments and the respondent kept delaying their decision on the same. On 4.10.1997 the appellant approached the Settlement Committee constituted by the respondent Board for release of the outstanding payment. It is the appellant's case that they were required to have pursued the matter with the Settlement Committee prior to initiating arbitration. However the Settlement Committee also failed to respond to their representations. The respondent vide internal communications dated 20.11.1997 acknowledged that the matter was pending consideration with them. Thereafter by letters dated 17/18.12.1999 the respondent replied to the appellant partly allowing one claim to the extent of Rs. 1,34,359.12 and requesting details of bills/invoices of certain other claims for verification. The appellant on 6.1.2000 replied stating that the bills had already been processed for payment and sent photocopies of the bills submitted earlier to the respondents. On 5.10.2002 and 10.10.2002 the appellant sent a final communication to the respondent requesting payment of all the outstanding amounts. When the payment was still not made, the appellant sent a communication dated 22.11.2002 to the respondent requesting appointment of an arbitrator for adjudication of disputes relating to payment, as provided under the arbitration clause. However the respondent did not appoint an arbitrator within the period of 30 days as stipulated under the agreement between the parties. Hence the appellant has filed the aforementioned Arbitration Applications for appointment of an arbitrator. Per contra, the respondent contends that as per the appellant's own admission, the final bills for the work orders were raised in 1983. Hence since the request for arbitration was invoked only in 2002, the appellant's claim is barred by limitation. ;


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