ROHIT RANJAN AGARWAL,J. - (1.) Heard Sri Ashish Kumar, learned counsel for the applicant and Sri Arun Kumar, learned counsel for the respondent-Development Authority.
(2.) This application under Section 11(4) and 11(6) of Arbitration and Conciliation Act, 1996 (hereinafter referred to as "Act, 1996") has been filed for appointment of an independent Arbitrator, preferably a retired Judge of this Court.
(3.) Facts, in nutshell, are that on 26.02.1985, Allahabad Development Authority (Now known as Prayagraj Development Authority, for short "Authority") framed a project for construction of Multi-Storey Complex at Clock Tower, Chowk then Allahabad (now Prayagraj). Tender, inviting for construction of Commercial Complex, was issued on the said date. Cost of project was quantified approximately at Rs.57 lakhs. Applicant-Company being the lowest bidder, the bid was accepted on 19.03.1985 and an agreement was entered between the parties on 04.04.1985 for construction of two-storey Commercial Complex, to be completed within six months from the date of commencement. However, at a later date, the said project was changed to four-storey Complex along with one Powerhouse building and the cost was also varied. The contract contains arbitration clause no.46 providing for adjudication of dispute by Arbitrator as per the provisions of Arbitration Act, 1940 (old Act) as well as any statutory modifications thereafter. As per the terms of the agreement, construction was not completed within six months as such period was extended and it was completed on 31.8.1987. The applicant-Company was paid about Rs.1,14,00,000/- out of twelve running bills for amount of Rs.1,14,43,922.01. However final bill was submitted by applicant on 09.12.1989 before the Authority. According to the applicant, as the bill was not cleared by the authority, a Writ Petition No.9086 of 1993 was filed before this Court seeking a writ of mandamus commanding the respondent-Authority to release the final amount of bill. This Court on 21.01.1994 disposed of the writ petition directing the Vice-Chairman of the Authority to decide the claim of applicant-Company within a period of one month from the date on which certified copy of the order is produced before him. On 17.06.1994 the Vice Chairman of the respondent-Authority rejected the claim of the applicant-Company. The applicant-Company on 11.02.1995 sent a letter to the Vice-Chairman of the respondent Authority appointing one Sri R.C.Jain, fellow of Indian Institute of Architect, as an Arbitrator invoking the arbitration clause and requested the Authority to appoint another Arbitrator in terms of the Clause 46, and in case the Authority fails to appoint Arbitrator within 15 days, the Arbitrator appointed by the applicant shall adjudicate the dispute between the parties as sole Arbitrator. On 06.02.1995, the Vice Chairman of the Authority informed the applicant that the matter had already been decided and the claim of the applicant has been rejected on 17.06.1994, thus question of appointing Arbitrator does not arise.;