JUDGEMENT
R.BANUMATHI,J. -
(1.) These appeals arise out of the impugned judgments dated 15.05.2015 and 02.02.2015 passed by High Court of Delhi in Arbitration Petition No.168 of 2015 and Arbitration Petition No.531
of 2014 in and by which the High Court appointed an independent
arbitrator for adjudication of disputes between the parties, instead of
directing appointment of arbitrator as per Clause 64 of General
Conditions of Contract (GCC) which stipulates that Railways'
Officers should be appointed as Arbitrator.
(2.) Brief facts which led to filing of these appeals are as under:-
Facts in CA No.6400/2016:-
On 14.07.2010, Northern Railways awarded the contract for
misc. civil engineering works such as construction of duty huts at
L-xings, water supply arrangements, provision of station name
boards etc. in connection with Rewari-Rohtak New Line to the
respondent. The total cost of the work at accepted rate came to
Rs.5,30,31,369.30. The work was finally completed on 31.03.2012.
According to the appellant, final payments were made by the
appellant to the respondent vide bill bearing Vr.No.00356/104/C/TKJ
dated 06.05.2014. On the same day i.e. on 06.05.2014, parties also
entered into a supplementary agreement which recorded full accord
and satisfaction as on 06.05.2014. In the meanwhile, on
05.05.2014, respondent sent a letter to the appellant alleging that under the compulsion of circumstances, it had to sign the so-called
final bill without protest as desired by the administration, otherwise
heavy financial loss would have been caused to respondent and it
may not be in a position to tender and execute further works. The
respondent averred that a sum of over Rs.1.50 crores still remains
to be paid to the respondent and calling upon the appellant to make
the payment within 90 days. The respondent vide its letter dated
05.05.2014 invoked arbitration clause as contained under Clause 64 of General Conditions of Contract.
(3.) The appellant issued a reply dated 25.07.2014 rejecting the arbitration claim of the respondent, taking the stand that the
respondent had signed the final bill and also signed the
supplementary agreement which clearly stipulates that it was
agreed between the parties that the respondent has accepted the
said sums mentioned therein in full and final satisfaction of all dues
and claims under the principal agreement.;
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